Elon Musk cancels $44 billion Twitter purchase
Tesla Inc. chief executive officer Elon Musk announced he would cancel a $ 44 billion deal for the purchase of Twitter Inc. on Friday.
In a statement, Musk said the move was taken after the social media giant failed to submit information about fake accounts on the platform.
Following the announcement, Twitter shares fell seven percent. Last April, Musk offered $ 54.20 per Twitter share.
Musk’s lawyer said Twitter failed or refused to respond to some of its clients’ requests regarding information about fake accounts or ‘ spam’ found on the platform.
“Twitter has breached the agreement and was seen giving false or misleading information when making the merger agreement made with Musk,” he said.
This information is important to measure the actual performance of the company’s position.
Meanwhile, Twitter in an immediate reaction informed of Musk’s suit following the action to cancel the purchase.
Earlier Musk warned it would cancel the purchase if Twitter failed to submit evidence that the number of ‘ spam’ or ‘ bot’ accounts comprised less than five per cent of all users of the social media service.
Last month Twitter gave Musk access to the company’s ‘ firehose ’ data containing hundreds of millions of users ’daily tweets.
source – Astro Awani
