ELON MUSK DECIDED NOT TO BUY TWITTER, A $44 BILLION DEAL

 

ELON MUSK DECIDED NOT TO BUY TWITTER, A $44 BILLION DEAL

Elon Musk, Chief Executive Officer (CEO) of Tesla and SpaceX, has decided to pull out of the 44 billion dollar deal to buy Twitter, claiming that the company (Twitter) was unable to satisfy him over fake and spam accounts on the microblogging platform. According to a filing submitted to the Securities and Exchange Commission (SEC), Musk's lawyers said Twitter did not respond to several requests for detailed information about the fake and spam accounts, which is required to enhance the company’s business performance. filing further states that Twitter on several occasions ignored Musk's requests for information, while on some occasions rejected them without giving a reason. The filing also states that Twitter not only violated several provisions of the merger agreement but also made false and misleading representations to convince Musk to buy Twitter. Twitter has not issued an official statement since Musk announced its withdrawal from the 44 billion dollar deal. However, Twitter chairman Brett Taylor said the company would seek legal action against Elon Musk.

It is worth mentioning here that under a special clause in the multi-billion dollar agreement, Elon Musk is required to pay 1 billion to Twitter if he fails to maintain the merger agreement.