Twitter to sue Elon Musk for backing out from $44 billion deal

Twitter has decided to sue Elon Musk after he wrote a letter to the company saying that he wants to cancel his $44 billion bid to purchase Twitter.

In response to the letter by Musk’s lawyer, the chair of Twitter’s board, Bret Taylor, tweeted that the board is “committed to closing the transaction on the price and terms agreed upon” with Musk and “plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”

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

According to a letter by a lawyer on behalf of billionaire Elon Musk addressed to Twitter’s top legal officer on Friday, Musk notified the company that he wants to cancel his $44 billion bid to purchase Twitter.

“Mr Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement, appears to have made false and misleading representations upon which Mr Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect.”

He also claimed Twitter breached its obligations under the agreement to get Musk’s consent before changing its ordinary course of business, pointing to recent layoffs at the company.

Elon Musk, CEO of Tesla and SpaceX, agreed to buy Twitter in April. Then in June, Twitter’s board of directors agreed on a $44 billion deal with Musk.