Elon Musk cancels his deal with Twitter, the company will soon sue Elon Musk

Pankaj Prasad
Elon Musk cancels deal with Twitter
Elon Musk cancels deal with Twitter

After the breakup of this deal, Twitter has started preparing to sue Musk.

Elon Musk Twitter Deal:Β The world's richest person Elon Musk has announced to withdrawal from his Twitter deal, let us tell you that on April 25, Musk had placed an offer in front of the company to buy Twitter for 44 billion dollars. Twitter is preparing to sue Elon Musk soon after withdrawing from this deal.

Why did Elon break the deal?

According to Elon Musk, many provisions in the agreements have been broken by Twitter during this deal. Giving information about this on his Twitter handle, Elon Musk's lawyer wrote that "Elon Musk has decided to cancel this deal. They are doing this because, Twitter has signed agreements with them during this deal." Twitter has put false and misleading information in front of Elon Musk and Elon Musk trusts him."

what twitter has to say

Explaining this, Twitter said that we want to complete this deal and are preparing to go to the court to complete it. Twitter Chairman Bret Taylor wrote in his tweet that "The Twitter Board is committed to closing the transaction on the agreed price and terms with Mr. Musk and plans to take legal action to enforce this, we believe." That we will win in the Delaware Court of Chancery."

The deal was on hold since the month of May

Elon Musk had put his deal with Twitter on hold since the month of May. According to Elon, the main reason behind putting this deal on hold was that they wanted to know from Twitter whether the bot account on their platform is less than 5 percent or more. At the time of the Twitter deal, the company had shown some similar figures to Elon Musk.

Will Elon Musk have to pay the penalty?

According to the reports, if any party breaks this deal made between Elon Musk and Twitter, then he will have to pay a penalty of 1 billion to the people. According to the agreement, at present, Twitter will have to pay 1 billion through Elon Musk. But, if the claims made by Elon Musk prove to be true, then this matter could turn completely upside down. If Elon's claims prove to be true, then they can take legal action against Twitter.

Bad effect on Twitter's shares

Tesla's stock gained 1 percent after news of Elon Musk breaking the deal, and Twitter's shares, on the other hand, saw a 5 percent drop.