Elon Musk is pulling out of his $44 billion bid to buy Twitter.
On Friday, the Tesla CEO delivered a letter to the social media's board saying he's terminating his purchase bid.
Twitter didn't take long to respond to the pull out from Musk, saying that they plan to take legal action against Musk and his plan to cancel the enormous bid for the social media platform.
“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,” Twitter chairman Bret Tayler, wrote in a tweet. “We are confident we will prevail in the Delaware Court of Chancery.”
In the letter delivered to Twitter, it states that Elon Musk's decision is based on misinformation involving bot accounts.
“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 (as that term is defined in the Merger Agreement),” said the letter to Twitter.
This only adds to the on-going feud between both, Musk and Twitter, over the fundamentals of the social media giant including its stance on free speech.
Musk has always been vocal about his opinion regarding free speech and censorship. which are two things he's been consistently critical about when he's addressed this particular social media site.
Additionally, as Musk delivered that letter to the social media giant, Twitter shares took a hit by 5% down to $36.81 per share, which is lower than the $54.20 per share that Musk had previously offered to buy.
Meanwhile, Tesla shares went up 2.5% to $752.29 per share.
More updates will be posted as this story unfolds.