Twitter: Elon Musk's termination of acquisition deal is "invalid and wrongful"

The Elon Musk-Twitter saga is far from over with both parties contesting that they are in the right. Elon Musk recently announced that he is terminating his $44 billion Twitter acquisition because the number of bots and spam accounts on the social media platform are allegedly higher than what Twitter has disclosed. Meanwhile, Twitter says that this is absolutely not the case and that less than 5% of its daily active users are bots.

Twitter board chairman Bret Taylor had previously stated that the company would pursue the matter in court and it appears that we are well on the way to this happening pretty soon.

As reported by Bloomberg, Twitter's lawyers have sent out to a letter to Musk's attorneys, saying that Musk's termination of the acquisition deal is "invalid and wrongful". The letter, that has also been filed with the Securities and Exchange Commission, notes that:

Twitter has breached none of its obligations under the agreement, and Twitter has not suffered and is not likely to suffer a company material adverse effect. Twitter reserves all contractual, legal, and other rights, including its right to specifically enforce the Musk parties’ obligations under the agreement.

The fallout of the termination of the deal has also resulted in Twitter's share price tumbling by another 11% by close of business on Monday, which is the biggest one-day decline for the company in the past 14 months.

As it currently stands, neither Musk nor Twitter's attorneys have filed a lawsuit in the Delaware Court of Chancery yet. The matter itself could go either way including a renegotiation of the deal, Musk paying a penalty, or the court ruling in favor of the Tesla executive. We'll likely find out over the course of the next few weeks or months.

Source: Bloomberg