Elon Musk seeks to formally withdraw from its $ 44 billion acquisition Twitter deal

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According to corresponding reports at CNBC and numerous other media outlets, Elon Musk’s lawyers officially announced on Friday evening that the founder and CEO of Tesla and SpaceX has filed to terminate his acquisition of Twitter. Allegedly, Twitter has not fulfilled several contractual obligations, and in the process, Musk has not been provided with various pieces of information that he requested. One of these issues may revolve around statistics on the number of spam and fake accounts, which are quite important from an economic point of view as they could supposedly account for around 5 percent of Twitter’s daily users.

According to his lawyers, the eccentric billionaire has backed out of the contentious agreement valued about US$44 billion since the company has broken a number of contractual requirements. As a result, it appears that he is no longer willing to purchase the social network Twitter. The world’s richest man, South African billionaire Elon Musk, was reported to be interested in purchasing Twitter for about US$44 billion in mid-April of this year. His aspirations to properly connect the business with the right to free speech guaranteed by the constitution have now been shelved in a foreboding yet unexpected narrative turn.

Highlights

  • Twitter’s board chairman, Bret Taylor, has since published a Tweet in which he asserts that the company “is committed to closing the transaction on the price and terms agreed upon”. He further states that Twitter is confident that it will prevail in a possible legal battle against Elon Musk.

  • However, terminating the Twitter deal could potentially cost Elon Musk dearly, as he contractually agreed to paying US$1 billion in case he backs out of the acquisition. In an initial reaction, the stock price of Twitter tanked by around 5% in after-hours trading on Friday evening, but a long and tedious legal dispute regarding the acquisition and all of the associated financial obligations now seems more likely than ever.

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