Skip to main content

Elon Musk Pulls The Plug On Twitter, Discontinues His $44 Billion Deal To Buy Twitter On Friday

Elon Musk Stops His $44 Billion Deal To Buy Twitter On Friday.

Musk said he had backed out because Twitter failed to provide enough information on the number of spam and fake accounts.

Musk is accusing the company of “misleading” statements about the number of fake accounts, a regulatory filing showed.

In a letter filed with the US Securities and Exchange Commission, Mr Musk's lawyer said Twitter had failed or refused to provide this information.

"Sometimes Twitter has ignored Mr. Musk's requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information," the letter reads.

Musk terminating the deal that he inked in April to buy the social media giant sets the stage for an epic court battle over a billion-dollar breakup fee and more.

“Mr. Musk hereby exercises (the) right to terminate the Merger Agreement and abandon the transaction,” his lawyers said in a letter to Twitter, a copy of which was filed with the Securities and Exchange Commission.

Musk’s change of heart about buying Twitter appeared to suggest some “buyer’s remorse” for offering a price of $54.20 per share that now appears “laughable,” CFRA Research senior equity analyst Angelo Zino said in a note to investors before the deal was officially nixed.

Musk has said he believes number of accounts run by software instead of people to be much higher, Twitter, maintain that it is not more than five percent. 

With a recommendation by Twitter’s board for shareholders to approve the buyout at a special vote, which was expected to be held in August. Elon Musk had to make a decision.

In May, Mr Musk said the deal was "temporarily on hold" as he was awaiting data on the number of fake and spam accounts on Twitter.

The billionaire businessman had asked for evidence to back the company's assertion that spam and bot accounts make up less than 5% of its total users.

Spam accounts are designed to spread information to large numbers of people and manipulate the way they interact with the platform. On Thursday, Twitter said it removed around 1 million such accounts each day.

Mr Musk believes that spam or bot accounts could account for 20% or more of Twitter users.

Shares in Twitter fell by 7% in extended trading after the announcement.

In a filing, Mr Musk said he'd repeatedly been refused information about the number of bot accounts on Twitter - which is why he wished to terminate the deal.

Elon Musk though has already put pen to paper on this deal, and it is not totally clear whether he can back out at this stage. Mr Musk will need to prove that Twitter breached their agreement.

Twitter says it plans to pursue legal action to enforce the agreement.



Comments

  1. Anonymous17 July 2022 at 07:17

    Billionaire behaviour 😂😂

    ReplyDelete
  2. Anonymous17 July 2022 at 07:17

    Money too much 😂😂😂

    ReplyDelete

Post a Comment

Type your comments here

Popular posts from this blog

You And Your Health-Why Hair Turns Gray

The Real Reasons Hair Turns Gray, According to Dermatologists. Whether you discovered your first silver strand or you’ve decided to let your natural hair color shine, it’s normal to find yourself wondering, why does hair turn gray? And while we’ve touted ways to embrace and style your gray hair, the science behind why white and gray strands occur is actually quite interesting. We’ve all heard the thought that stress causes gray hair, and in fact, recent studies suggest a link between the two.  But, there are so many more reasons why your locks might be getting lighter. In fact, general aging and even your genes could have a lot more to do with your silver strands than you might think. Underlying health conditions like vitamin deficiency or alopecia could even be a factor. Ahead, we asked dermatologists to explain why hair turns gray, what causes premature graying, and if it’s possible to reverse gray hair. Why does hair turn gray? “Gray hair is really hair with less melanin, what g...
3 comments
Read more

FIFA World Cup Fans - Qatar Charters Another Cruise Ship to Accommodate Football Fans

Football lovers are in for a cruise as organizers of the highly anticipated FIFA World Cup in Qatar have chartered another cruise ship to accommodate Football World Cup 2022 guests. The cruise ships will provide more than 1000 rooms to the fans coming to attend the month-long event. The World Cup will begin on November 20th and an estimated 1.5 million people will arrive in Qatar for this event. Doha, the capital city of Qatar has a hotel room capacity of 31,000. This number does not even come close to the number of rooms required for the event. Qatari Organizers are on a war footing trying to arrange accommodations for the fans of the FIFA World Cup, who will start arriving shortly. Among the measures taken are, containerized cabins at the edge of the city, a tent “fan village” on Qetaifan Island, an assortment of apartments, and three chartered cruise ships operated by MSC Cruises to temporarily serve as hotels. The three chartered MSC Cruise ships are the MSC World Europa, the MSC P...
1 comment
Read more

"The Bird Is Free." Says Elon Musk As He Takes Over Tweeter

The world’s richest man, Elon Musk has closed a $44bn deal to take over ownership of social media service, Twitter. Confirming the takeover, Musk tweeted “the bird is freed”. In an earlier tweet where he addressed Twitter advertisers explaining why he is acquiring the app, Musk said, “The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence.” He added, “There is currently great danger that social media will splinter into far right wing and far left-wing echo chambers that generate more hate and divide our society, “In the relentless pursuit of clicks, much of traditional media has fueled and catered to those polarized extremes, as they believe that is what brings in the money, but, in doing so, the opportunity for dialogue is lost,” Musk said. Musk, however, warned that even though he wants to make the app a free space, “Twi...
1 comment
Read more