According to a letter a lawyer on behalf of billionaire Elon Musk addressed to the company’s top legal officer on Friday, Musk wants to cancel his $44 billion bid to purchase Twitter.
The acquisition will still be closed at the agreed-upon price, according to Twitter’s board chairman Bret Taylor, and the business plans to take legal action to enforce the contract.
In the Delaware Court of Chancery, we are certain we will succeed, Taylor wrote.
After hours on Friday, shares of Twitter fell by approximately 6%.
Attorney Mike Ringler of Skadden Arps said that Twitter “has not met with its contractual duties” in the letter, which was made public in a Securities and Exchange Commission filing.
Ringler said that Twitter did not give Musk the critical business information he wanted, as required by the contract, as Ringler asserted. According to Twitter, 5% of its monetizable daily active users (mDAUs) are spam accounts, according to statements made by Musk in the past.
“Twitter has failed or refused to provide this information,” Ringler claimed. “Sometimes Twitter has ignored Mr Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
