Musk cancels Twitter deal: Said – the company did not give information about fake accounts; Now 7.9 thousand crore rupees will have to be given

Tesla CEO and world’s richest man Elon Musk canceled the Twitter purchase deal on Friday. While closing the deal worth $ 44 billion (Rs 3.37 lakh crore), Musk said – the company has failed to provide data related to fake or fake Twitter accounts on its platform.

At the same time, Twitter board chairman Brett Tylow has said that we will go to court to implement the agreement. Twitter shares fell 6% after Musk canceled the deal.

The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.

— Bret Taylor (@btaylor) July 8, 2022

Musk may have to pay $1 billion
According to the purchase agreement between Twitter and Musk, if the deal is canceled, then under the conditions, Musk will have to pay a break-up fee of $ 1 billion (7.9 thousand crores), but Musk will only pay the break-up fee. Can’t escape by giving

The agreement includes a provision that could compel Musk to complete the deal. This means that Musk and Twitter may now have a protracted legal battle.

Musk had earlier said about withdrawing the deal
Just last month, Musk threatened to withdraw the deal if it was not proven that less than 5% of Twitter’s total users had spam accounts. Musk’s lawyer said that information about fake or spam accounts was sought on the Twitter platform, which was not answered or denied. Twitter violated the terms of the agreement and provided false information.

The condition was to bring down the number of fake accounts below 5%
Elon Musk’s condition was that Twitter should reduce spam and fake accounts from its platform below 5%. Twitter, on the other hand, had said that it was deleting 1 million spam accounts daily. Musk had been complaining for months that Twitter was underreporting the number of these accounts included in the user base.

However, the company has denied Musk’s claim, saying that the number of fake accounts is less than 5% of the total number of users. Musk believes that the number of spam accounts on Twitter is more than 5%.