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Tesla CEO Elon Musk on Monday mocked Twitter’s threat to sue him after it backed out of a deal to buy the social media company for $44 billion.
He tweeted that the company should provide more information on fake accounts.
The series of tweets on Monday was Mr Musk’s first public response to Twitter since announcing his intention to back out of the deal (on Friday last week) accusing the company of breaching of some of its provisions.
“Twitter’s board must consider the potential harm to the company’s employees and shareholders if additional internal data emerges during the litigation“says Mark Zgutowicz, an analyst at Benchmark, a market research company.
Twitter has announced plans to sue Mr. Musk earlier this week to force him to end the acquisition, people familiar with the matter told Reuters.
Legal experts say the 16-year-old social media company has strong legal arguments against Mr. Musk, but may also opt for a renegotiation or formal settlement instead of a lengthy court battle.
“We believe that Elon Musk’s reasons for ending the deal have more to do with falling stock prices than a failure on Twitter’s part to meet his demands.Brent Thill, an expert working for Jefferies, an American investment bank and financial services company headquartered in New York City, wrote in a note.
Under the contract, Mr. Musk must pay a $1 billion penalty to Twitter if he is unable to fulfill the deal for reasons such as failure to obtain financing to complete the acquisition or if regulators block the deal. But this obligation would not apply if Mr. Musk ends the agreement himself./Voa
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