Elon Musk withdraws $44 billion bid to buy Twitter over 'misleading representations'
Categories: US NEWS
Elon Musk withdraws $44 billion bid to buy Twitter over 'misleading representations'
Tesla CEO Elon Musk has officially terminated his $44 billion acquisition deal for the social networking site Twitter over concerns about the number of fake users. Musk said on Friday that the decision was taken after Twitter failed to provide necessary information about fake accounts. The acquisition was long overdue and after Musk expressed his concern, share prices went down about 7 percent over the past few weeks.
According to the SEC filing, the lawyers said Twitter did not provide Musk with the necessary information despite multiple requests from him. According to experts, this could result in a protracted legal battle between Musk and Twitter as the terms of the deal stipulated a $1 billion break-up fee if the transaction is not completed. Earlier, Musk said that the deal is being delayed due to concerns about fake users.
During his speech at the Qatar Economic Forum last month, he said that his team was working towards the deal. Earlier, Musk said that the deal is being delayed due to concerns about fake users. During his speech at the Qatar Economic Forum last month, he said that his team was working towards the deal.
However, the number of fake users became a main issue of concern between both sides as Musk estimated the number to be around 20 percent. Although Twitter said it was not more than 5 per cent, the two parties could not find a middle ground.