Elon Musk pulls out of the Twitter deal, social media company plans legal action

Tesla CEO Elon Musk who initially kept the Twitter deal on hold has decided to pull out of the much-hyped deal. Explaining the reason behind his decision, Musk alleges that Twitter had breached multiple provisions of the merger agreement

Reacting to his Musk’s decision, Twitter chairman Bret Taylor has said that the Company plans to pursue legal action to enforce the merger agreement.

According to Taylor, the Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk. He expressed confidence that Twitter will prevail in the Delaware Court of Chancery.

However, Twitterati asked Taylor why is he eager to be owned by someone who does not want to own him. While other user @artasbartas wrote if the business is so great, why are you so desperate to sell at this price? And if it’s not, maybe focus on building a great product instead of pursuing legal battles.

Not only the chairman but Twitter Inc employees also expressed disbelief and exhaustion after Musk announced his decision to terminate the $44 billion merger agreement struck in April this year. They post memes and jokes. However, employees are more worried about the road ahead.

Twitter on April 25 confirmed it would be acquired by an entity wholly owned by Elon Musk at approximately $44 billion. Twitter was to become a privately held company after the completion of the transaction.

Musk who has been critical of Twitter’s moderation policy had said he wants Twitter’s algorithm to prioritize tweets to be public and was against too much power on the service to corporations that advertise.

Shares of Twitter were down 6% at $34.58 in extended trading. That is 36% below the $54.20 per share Musk agreed to buy Twitter in April.

Musk, who is the chief executive of automaker Tesla and rocket company SpaceX, connected with Twitter staff on a video town hall and said that he wanted to grow the company to at least 1 billion users from 229 million. Employees were also told that users should be allowed to post “pretty outrageous things.”

Also, Read Here: Twitter deal temporarily on hold, tweets Elon Musk

Musk, a prolific user of Twitter, has said in owning a social media service, he could make it more entertaining and maintain it as an essential public forum.

Earlier, employees expressed widespread concern about Musk taking over Twitter because of his preferences for cutting headcount and other costs, decreasing content moderation, and limiting remote work.