Elon Musk Pulls Out Of The $44 Billion Twitter Deal

Elon Musk, the world’s richest man and the CEO of Tesla (TSLA.O), announced on Friday that he was canceling his $44 billion agreement to acquire Twitter (TWTR.N). Citing the social media company’s failure to share information on phony accounts.

iexclusivenews reports that Twitter’s stock fell 7% during extended trading. In April, Musk made a bid of $54.20 per share.

Bret Taylor, the chairman of Twitter, said on the microblogging site that the board intended to file a lawsuit to enforce the merger deal.

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. We are confident we will prevail in the Delaware Court of Chancery.

— Bret Taylor (@btaylor) July 8, 2022

“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk…,” he wrote.

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What You Need To Know

Musk’s attorneys said in a document that Twitter has ignored or refused to reply to several requests for information on phony or spam accounts on the site, which is essential to the operation of the firm.

“Twitter is in material breach of multiple provisions of that Agreement and appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement,” the filing said.

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The statement adds another chapter to the will-he-won’t-he tale that began. When the world’s richest man agreed to acquire Twitter for $44 billion in April. But postponed the transaction unless Twitter demonstrated that spam bots make up fewer than 5% of its overall user base.

Under the terms of the agreement, Mr. Musk must pay a $1 billion breakup fee if the acquisition is not completed.

Mr. Musk had threatened to cancel the transaction unless the business could demonstrate that less than 5% of members on the social media platform were made up of spam and bot accounts.

Meanwhile, iexclusivenews Nigeria reports that the billionaire and the 16-year-old San Francisco-based corporation are expected to engage in a prolonged legal battle as a result of the ruling.