The billionaire slammed the social media giant for refusing to “fulfill its contractual obligations” throughout the acquisition process.
But Twitter immediately responded, with its chairman revealing that the firm planned to force the blockbuster takeover through the courts.
The company’s chairman, Brett Taylor, tweeted: “Twitter’s board is committed to closing the deal at the price and terms agreed upon with Mr. Musk and plans to sue to enforce the merger agreement. We are sure that we will win in Delaware Court of Chancery”.
Amir Shevat, whose Twitter bio says he works on the company’s developer products, joked that Musk had promised “exceptional” employees would be able to work from home
Jared Manfredi, whose profile says he works on iOS products on Twitter, gave his two cents about Musk going offline
The message was retweeted by Twitter CEO Parag Agrawal. This appears to be the only public statement the company will make at this time.
A leaked internal memo from the company’s general counsel, Sean Edgett, said: “Given that this is an ongoing legal matter, you should refrain from tweeting, tweeting or sharing any comments about the merger agreement,” a New York Times reporter said. Mike Isaac.
The post continued: “We will continue to share information when we can, but please know that we will be very limited in the meantime. I know these are uncertain times, and we appreciate your patience and continued commitment to the important work we do.”
Talking to NBC News of the failed deal, an anonymous Twitter employee said that Musk “fucked up the company.”
Twitter CEO Parag Agrawal will meet Tesla CEO Elon Musk one-on-one on Saturday when Musk addresses Allen and the company’s annual Sun Valley Conference, which Agrawal has been attending for the past three days.
The world’s richest man previously pulled the plug on the deal after saying he wanted his team to do “due diligence” on the number of fake accounts on the platform.
The employee said: “I think we won. But it feels like the end of a movie, with the characters bloodied and bruised and Michael Bay blasting behind them. We saw that coming, but in the meantime, he’s fucking wrecked the company.”
Amir Shevat, whose Twitter bio says he works on the company’s developer products, posted on the service shortly after news of Musk’s firing: “The end of season one is cool…”
Shevat later tweeted, “I still plan to be remote and exclusive,” an apparent reference to Musk’s earlier saying that “exceptional” employees would be allowed to work from home.
Jared Manfredi, whose profile says he works on iOS products on Twitter, wrote: ‘If this isn’t the start of a long legal battle that will end with the purchase price being reduced and the circus going on for an unspecified amount of time.’
Twitter told employees last month that it was on track to increase the number of users who see ads by 13 million during the second quarter that just ended, the highest such goal it has ever set. Twitter has yet to announce its second quarter results.
Later this month, Musk told Twitter employees in a video town hall that he wants to grow the number of users to at least 1 billion from 229 million. He also told them that users should be allowed to post “pretty outrageous stuff.”
Meanwhile, the world’s richest man, Musk, is now locked in a months-long deal with Silicon Valley social media giant Twitter worth about $44 billion — and his strong anti-remote sentiment is likely to clash with the company’s more relaxed work-at-home rules
Last month, Musk was in the south of France, where he attended celebrations and weddings with Natasha Bassett
Musk, a prolific Twitter user, said that by owning the social media service, he could make it more entertaining and maintain it as an important public forum.
His lawyer said in a regulatory filing on Friday that Twitter violated provisions of the deal to “keep the material components of its current business organization largely intact” by firing two managers, laying off part of its talent acquisition team, freezing hiring and rescinding job offers. It also mentioned the resignations of three heads of departments.
At the end of 2021, Twitter had more than 7,500 employees.
At a mass meeting with employees in April, Agrawal tried to calm employee anger after workers demanded answers about how managers planned to handle the expected mass departure triggered by Musk.
If the deal with Musk goes through, Agrawal could earn $42 million.
Musk also claims that Twitter has not been functioning properly for the past two months as he has frozen the hiring process and fired senior staff.
A day before Musk made his announcement, Twitter announced that they had laid off 30% of their nearly 100-person acquisition team. In a brief commentary to Business Insider, A Twitter spokesman said the layoffs were to “align Twitter with the needs of its news business.”
In a bombshell letter to the Securities and Exchange Commission, Skadden Arps attorney Mike Ringler, who is acting for Musk, said Twitter materially violated several provisions of the agreement.
Ringler wrote: “Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of several provisions of the Agreement, appears to have made false and misleading statements on which Mr. Musk relied in entering into the Merger Agreement, and is likely to suffer material negative impact of the company.
“While Section 6.4 of the Merger Agreement requires Twitter to provide Mr. Musk and his advisors with all data and information that Mr. Musk requests “for any reasonable business purpose related to the consummation of the transaction,” Twitter is failing to comply with its contractual obligations. .
“For nearly two months, Mr. Musk sought the data and information needed to ‘make an independent assessment of the prevalence of fake or spam accounts on the Twitter platform.’
“This information is fundamental to Twitter’s business and financial operations and is necessary to carry out the transactions contemplated by the Merger Agreement because it is necessary to ensure Twitter’s satisfaction of the closing conditions, to facilitate the financing and financial planning of the transaction by Mr. Musk, and to participate in the planning transition for business.
“Twitter failed or refused to provide this information. At times, Twitter has ignored Mr. Musk’s requests, at times it has denied them for what appeared to be unjustified reasons, and at other times it has claimed to be in compliance by providing Mr. Musk with incomplete or inappropriate information.”