Elon Musk Walks Out Of Twitter Deal

Article by Suman M Published on: 3:43 am, 9 July 2022

Tesla CEO Elon Musk announced on Friday that he was terminating his $44 billion deal for Twitter Inc. He says the reason for it is that the social media company failed to provide information on the fake accounts. Musk became the company’s biggest shareholder turned down a board seat and then started questioning about the bots and fake accounts.

Elon Musk reportedly mentioned in his letter to Twitter’s top lawyer that he is ending the ‘Twitter’ deal because of a ‘material breach of multiple provisions’.

Elon Musk had been raising doubts and questions that there are a greater number of bots and spam accounts that Twitter admitted to. Meanwhile, Twitter board chairman Bret Taylor said the board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement.

On the other side, Twitter shares fell nearly 6% in after-hours and Tesla stock gained more than 1%.

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