Elon Musk Deletes Twitter Deal Worth $44 Billion

Elon Musk Deletes Twitter Deal Worth $44 Billion
Elon Musk Deletes Twitter Deal Worth $44 Billion

Elon Musk said on Friday that he would terminate the $44 billion deal for Twitter.

San Francisco:

Elon Musk, Tesla’s chief executive and the world’s richest man, said on Friday he would end its $44 billion acquisition of Twitter after the social media company failed to provide information about fake accounts.

Twitter shares fell 7% in extended trading. Musk made an offer of $54.20 a share in April.

Twitter Chairman Bret Taylor said on the Weibo platform that the board plans to take legal action to enforce the merger agreement.

“Twitter’s board of directors is committed to completing the transaction at the price and terms agreed with Mr. Musk…” he wrote.

In a filing, Musk’s lawyers said Twitter’s failure or refusal to respond to repeated requests for information about false or spam accounts on the platform was critical to the company’s business performance.

“Twitter has seriously violated multiple terms of the agreement by appearing to make the false and misleading statements that Mr. Musk relied on in entering into the merger agreement,” the filing said.

The world’s richest man bought Twitter for $44 billion in April, but then put the acquisition on hold until the social media company proved that spam bots made up less than 5 percent of its total users.

The terms of the deal call for Musk to pay a $1 billion breakup fee if he doesn’t complete the deal.

Musk had threatened to halt the deal unless the company proved that spam and bot accounts accounted for less than 5 percent of users who saw ads on the social media service.

The decision could lead to a long legal battle between the billionaire and the 16-year-old San Francisco company.

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