After Tesla CEO Elon Musk reneged from his much-talked about proposed Twitter (NYSE: TWTR) takeover, the social media platform’s board seems to be committed in making the controversial businessman honor the deal.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk,” tweeted Twitter chairman Bret Taylor.
Following Musk walking away from the deal, Twitter’s shares fell sharply by 7%.
The firm also said that it has planned to “pursue legal action to enforce the merger agreement,” which is currently valued at US$44 billion.
“We are confident we will prevail in the Delaware Court of Chancery,” added Taylor.
But Musk previously accussed Twitter of breaking the merger agreement first when it allegedly refused to hand over details surrounding the number of spam accounts on the platform. This follows after he threatened to halt the acquisition until the company proves that bot accounts make up only less than 5% of all user accounts.
“At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Mr. Musk’s own analysis of that data will uncover,” wrote Musk’s legal counsel, Mike Ringler, in a letter to SEC.
But beyond the legal response, Musk seems to be trolling Twitter on its own platform after he posted a meme that’s an apparent answer to the firm’s planned legal recourse.
Musk, currently the largest single shareholder with 9.6% equity, previously dropped the plan to finance the Twitter buyout with margin loans – looking instead to satisfy the purchase consideration of US$33.5 billion via a larger equity contribution instead.
Twitter last traded at US$34.24 on the NYSE.
Information for this briefing was found via Twitter and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
