LAST UPDATE: 01.10
Tesla CEO Elon Musk said late Friday night (Greece time) that he was ending the $44 billion deal to buy Twitter, saying – according to Reuters – that the company had failed to provide information about with the fake accounts on the platform.
Shares of Twitter fell as much as 7% after the close on Wall Street. It is recalled that Musk had offered $54.20 per share in April.
The announcement throws headlines at the end of the mammoth deal scenario, after the world’s richest man struck a deal last April to buy Twitter but then put it on hold until the social media giant proved that spam bots represent less than 5% of its total users.
In a filing with regulators, Musk’s lawyers said Twitter failed or refused to respond to multiple requests for information about fake or spammy accounts on the platform, which are fundamental to the company’s business performance.
“Twitter is in material breach of multiple provisions of this agreement, appears to have made false and misleading statements relied upon by Mr. Musk in entering into the agreement,” the filing states.
It is noted that the terms of the deal require Musk to pay a fee of $1 billion to cover the exit clause of the deal.
The decision is likely to lead to a protracted legal battle between the billionaire and Twitter.
Source: Capital
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