Musk Finally Pulls Out Of Twitter Deal

Twitter shares plunged Monday after Elon Musk announced the withdrawal of his us$44 billion ($65 billion) takeover bid, setting the stage for a potential legal brawl.

Tesla chief’s first response since he made public his intention to ditch the offer on Friday because Twitter had breached multiple provisions of the merger agreement was done on Twitter.

Benchmark analyst mark Zgutowicz said “twitter’s board must contemplate the potential harm to its employee and shareholder base of any additional internal data exposed in litigation,”

It has been said that musk could put bots front and centre in the litigation if he defends against twitter’s lawsuit by claiming the company misrepresented the number of fake accounts.

According to Musk’s legal team, “Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement [and] appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.” What does that actually mean? In short, Musk says Twitter underestimated the number of bots active on the platform.

However, many industry watchers think Musk has gotten cold feet for the deal since Twitter shares have sunk over 30% since the takeover was announced—making Musk’s $44 billion offer look like way too much to pay for the company.