Elon Musk wants to terminate the proposed $44 billion deal he spent the last several months negotiating to buy Twitter, he said Friday, launching a legal war with the company, which said it plans to sue.
According to a letter he sent the company’s board Friday, the Tesla CEO said he plans to terminate the acquisition. In that regulatory filing to the U.S. Securities and Exchange Commission Friday, Musk alleged Twitter “is in material breach of multiple provisions” of their agreement.
Twitter “appears to have made false and misleading representations upon which Musk relied when entering the Merger Agreement, and is likely to suffer … adverse effect,” the SEC filing continued.
Twitter said it planned to sue Musk to complete the $44-billion merger he rejected, adding it is confident the website will prevail in court. The board could accept a $1 billion breakup fee if Musk pulls out, or the social media giant could drag him to court.
Musk has more than 95 million followers and floated the idea of purchasing the website, arguing it had stifled users’ freedom to fair speech.
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