Elon Musk Terminates $44 Billion Deal to Buy Twitter

Elon Musk terminates USD 44 Billion deal to buy Twitter, Twitter had failed to respond to multiple requests for information on fake or spam accounts
USD 44 Billion Twitter Deal

USD 44 Billion Twitter Deal

  • Elon Musk OFFICIALLY said he’s terminating his $44 billion deal to acquire Twitter and take it private, triggering a legal fight with the company.
  • A law firm representing the Tesla CEO sent a letter to Twitter on Friday, alleging that they appear "to have made false and misleading representations" when he agreed to buy the company on April 25. 
  • Twitter says it's going to sue Elon Musk for trying to back out of the deal.
  • Elon Musk's decision to cancel Twitter's (TWTR) purchase plan had a positive impact on Tesla's (TSLA) stock performance.
  • Musk's backlash from the Twitter deal now begins a major legal battle, the social media platform said on Friday.
  • Twitter said it was planning legal action to uphold the agreement.

Elon Musk is trying to back out of his deal to buy Twitter, according to a letter filed with the SEC on Friday. Musk's lawyers cited the billionaire's unfulfilled requests for internal spam bot data as a major reason for the decision. "For the past month, Mr. Musk has been clear that he views Twitter's non-responsiveness as a material breach of the Merger Agreement giving him the right to terminate the Merger Agreement if uncured," the lawyers wrote. However, Twitter chairman Bret Taylor said the company would sue to enforce the merger agreement.

Twitter says roughly 5% of its monetizable daily active users (mDAUs) are spam bots. Musk, who largely waived his right to due diligence, cast doubt on Twitter's estimate and requested internal company data to make his own evaluation. However, Twitter CEO Parag Agrawal said the company could not give Musk the data because it included private information that could not be shared externally.

Coverage was widespread and prominently featured across the spectrum on Friday evening, often using words like "alleged" and "claimed" to describe Musk's accusations against Twitter. Some left and center-rated outlets framed Musk's claims of inaccurate bot estimates as "unsubstantiated" or lacking "any apparent evidence."

Elon Musk's decision to cancel Twitter's (TWTR) purchase plan had a positive impact on Tesla's (TSLA) stock performance. From trading data, TSLA rose 18.66 points or 2.54 percent to 752.29 per share. Conversely, TWTR just fell 1.98 points or 5.10 percent to 36,81 per share.

 Analysts said the increase was not in line with Musk's decision to back off plans to buy Twitter worth $44 billion, giving confidence to investors where concerns are the CEO will never be diverted again. As a key figure, Musk's role is undeniable. 

Musk's backlash from the Twitter deal now begins a major legal battle, the social media platform said on Friday. Twitter said it was planning legal action to uphold the agreement.

Hello! Welcome to techbard.in Techbard.in is an "Indian Top Tech News Website"- This Blog completely dedicated to the Latest Tech News, Tech Updates, How-To's from all Top Sources in an…

Post a Comment

All Rights Reserved by Gnaneshwar Gaddam Distributed by Techbard