Elon Musk walks away from Twitter deal https://

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Elon Musk is bailing on his $44 billion agreement to buy Twitter, claiming that the social media company hasn't met its contractual obligations, according to a statement filed with the U.S. Securities & Exchange Commission.

Why it matters: This could set up a massive legal fight between Musk and Twitter, with a Delaware court as the deal's ultimate arbiter.

Behind the scenes: Musk largely waived due diligence before agreeing to buy Twitter at a price that seemed high even before the broad decline in tech stocks.

Since signing the deal, however, he's argued that Twitter is likely undercounting the number of "bot" accounts on its platform, and demanded access to related data.
Twitter has provided Musk with some data, but also has maintained its intentions to close the merger at the agreed-upon price and terms.
In his letter to the SEC, Musk also argues that Twitter's decision to fire two top executives breached the merger agreement, as did certain employee layoffs and hiring freezes.

What to know: Twitter could sue to enforce the deal, under a merger term called "specific performance" that theoretically could result in a Delaware judge forcing Musk to buy the company. It also could seek damages.

The company has not yet commented on Musk's decision.
It's also worth noting that Musk is being investigated by the SEC for the timing of his public disclosures related to Twitter stock acquisitions earlier this year.

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