Mumbai: After a lot of speculation, Tesla chief executive officer Elon Musk has pulled out of the $44 billion deal to buy Twitter which he inked back in April.
Musk stepped back with an announcement, in a regulatory filing, on Friday that he would drop his $44 billion offer to buy Twitter. Musk's lawyers stated that Twitter has failed to respond to their multiple requests for information about fake accounts.
According to a letter sent to Twitter on behalf of the Tesla chief's, Elon Musk is terminating his $44 billion deal to buy Twitter, citing multiple breaches of the purchase agreement. The letter said that Musk is terminating the merger agreement because Twitter violates several provisions of that agreement.
Reacting to this, Twitter chairman Bret Taylo, said the board will take a legal route to enforce the merger agreement. He tweeted, "The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk and plans to pursue legal action to enforce the merger agreement."
According to the agreement, Musk will have to pay $1 billion if he fails to make the complete transaction for the deal.
Musk had threatened to cancel the transaction unless the business could demonstrate that less than 5 percent of members on the social media platform were made up of
spam and bot accounts.
The billionaire and the 16-year-old San Francisco-based corporation are likely to engage in a protracted legal battle as a result of the ruling.