Tesla and SpaceX Chief Executive Officer Elon Musk terminates a $44 billion Twitter deal. According to Reuters, the billionaire had been looking for a way out of the deal for quite some time and finally got what he wanted. After the agreement was terminated, shares of Twitter fell 6 percent in extended trading. Here are the details…
Why did Elon Musk pull out of the Twitter deal?
Elon Musk announced in April that he had decided to buy Twitter. He soon reached an agreement with the shareholders, and his $40 billion offer was accepted. However, the dispute over the number of bot accounts could not be resolved, resulting in the deal’s suspension.
It has been almost two months, and no progress has been made. Finally, Elon Musk announced that he had terminated the deal. The billionaire has not yet made a statement on the subject but considering his past, he may tweet about it soon.
Musk’s lawyers have written to Twitter accusing it of refusing to provide sufficient information about the number of false users on the service as part of a simmering dispute over the number of spam and fake accounts that populate the platform.
The main reason for the accusations is to avoid compensation. According to the agreement between Elon Musk and Twitter, if Musk or Twitter gives up without giving a valid reason, compensation will be paid.