American entrepreneur Elon Musk pulled out of a deal to buy Twitter.
In a letter from his representative, sent to the company, it is said that the reason for this was "a material violation of several provisions of the agreement." In particular, Musk's lawyers pointed out that Twitter was unable or refused to provide information about the platform's fake accounts.
Musk also said he was pulling back on the purchase because Twitter fired top executives and one-third of its talent scouts. According to the lawyer of the billionaire, by doing so, the social network violated the obligation to “keep the material components of its current business organization practically intact.”
Twitter Chairman Bret Taylor responded that the company plans to take legal action to enforce the purchase agreement:
"Twitter's board of directors intends to close the deal at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement."
The fact that Musk is going to buy Twitter became known in mid-April. The businessman was going to buy shares of the company at a price of $54.2 a share – 54% more expensive than they were worth on the day he started investing, and 38% more expensive than on April 1, three days before his investment was known other.
At the end of May, Twitter shareholders filed a class action lawsuit in Northern California court against Musk and the company, as the businessman, in their opinion, violated the law. He deliberately concealed his plans for the deal and then made allegations of fake social media accounts to lower the price by at least $11 billion.
In May, Musk said he would not close the deal until the CEO of Twitter released a report that the number of fake accounts on the social network did not exceed 5%. He claims that there are up to 20% of bot accounts on the social network.
