Elon Musk made a huge fuss on the internet after confirming the cancellation of the Twitter deal.
As expected, this disappointed a lot of people, including his fans, since the billionaire showed that he really wanted to acquire the social media platform.
But, one of his lawyers confirmed the tech CEO's plans, saying they no longer want to buy Twitter. This announcement came days after his twins with a Neuralink exec were confirmed.
Because of this, many people claimed that he made the Twitter deal to cover up his newborn kids. Of course, this should be taken with a grain of salt since Musk didn't confirm this reason.
To clarify things, Elon's lawyers provided several reasons why they are now canceling the Twitter acquisition.
Elon Musk Vs. Twitter: Deal Cancellation Reasons
According to CNBC's latest report, the billionaire's lawyers provided three reasons Musk decided to cancel the Twitter deal.
First, they said that the social media company could not provide the correct record for spam accounts active on Twitter. Musk claimed that 5% of Twitter accounts being fake is false, saying that the number should be higher.
The Verge reported that one of the biggest factors affecting Musk's Twitter acquisition is the platform's spam bot issue.
The second reason involves insufficient data and information. Elon's lawyers stated that Twitter didn't provide enough access to the platform's books, records, and properties.
Meanwhile, their last argument claims that Twitter did things without the consent of Elon.
His lawyers further explained that their contract states that the social media platform should inform or ask the billionaire before firing employees and other ordinary business activities.
Will the Twitter Deal Cancellation Go Smoothly?
Critics stated that the Twitter deal cancellation might not go as smoothly as Elon and his lawyers expected. This is because of the so-called "specific performance" in contracts.
This clause is commonly used in real estate cases. Lawyers rely on this to prevent sellers or buyers from suddenly canceling their deals with other entities without any good reason.
The specific performance clause also applies to company acquisitions in the corporate world. Past cases already showed that deal cancellations rarely go smooth.
One of these is with Tyson Foods and IBP, which the court ruled that Tyron Foods can't back out from its acquisition agreement with IBP.
Previously, Elon Musk's Twitter absence ended after he posted a tribute to the death of Technoblade.
Also, a Twitter chairman confirmed the deal cancellation plan of the billionaire.
Related Article : Elon Musk Responds to Twitter Acquisition Issue With a Meme
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Written by: Griffin Davis
