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

Asiwaju Bola Ahmed Tinubu, Wins Big In Governor Nyesom Wike's Local Government Area

The presidential candidate of the All Progressives Congress (APC) Asiwaju Ahmed Bola Tinubu, has won the Obio-Akpor, the Local Government Area of Governor Nyesom Wike in Rivers State by a landslide. Tinubu polled 80,239 votes to defeat the Candidate of the Labour Party (LP), Peter Obi, who came a distant second with 3,829 and the People’s Democratic Party (PDP), who got 368 votes.
Post a Comment
Read more

In a Flash - Nigerian News Dailies

ThisDay News: • Buhari Meets 23 Freed Kaduna Train Victims, Charges Service Chiefs to Replicate Success. *Appreciates military for bravery  *Lists unprecedented acquisition of military platforms, hardware in seven years. • PDP NEC Members Appeal to Wike, Others to Sheathe Swords. Ahead of the official commencement of the PDP Presidential Campaigns on Monday, October 10, in Uyo, Akwa Ibom State, National Executive Committee (NEC) members of the party, have appealed to aggrieved the persons in the party, especially the five governors led by Nyesom Wike of Rivers State, to sheathe their swords and give peace a chance. The Cable: • Jega now a politician… he’s biased on ASUU-FG rift, says Ngige Premium Times: • Buhari presents Nigeria’s 2023 budget to National Assembly Both the Senate and the House, within the week, passed the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), in preparation for the presentation. • Appeal Court orders ASUU to call off stri...
Post a Comment
Read more

Maitama, Abuja - One Shot Dead As Suspected ‘Kidnappers’ Strike

  One person was gunned down when men suspected to be kidnappers attacked Gana Street in Maitama, Abuja. The incident is said to have occurred at about 8:46pm on Wednesday. According to the Daily Trust,  a resident, who pleaded anonymity, told Daily Trust that the victim was killed while trying to rescue a man that was being forced into a black Prado SUV by the suspected kidnappers. He specifically said the SUV was parked at Number 44 Gana street where the victim was shot in the head by one of the suspects and he died immediately. The source added that the suspects escaped with their victim while the body of the deceased was still on the street at the time of the incident. He added that this is the second incident happening at the same Gana street in the past few weeks. The resident said some persons loitering around the place may be behind the attacks. He said the boys loitering around area usually target pharmaceutical stores and supermarket in Maitama, alleging that police ...
Post a Comment
Read more