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Elon Musk no longer plans to purchase Twitter for $44 billion, according to Reuters. Musk told Twitter this evening that he is calling off the deal because of "material breach of multiple provisions of the agreement."

twitter-elon-musk.png

Back in April, Musk offered to buy Twitter for $54.20 per share, and Twitter agreed to accept the offer in late April. Since then, the deal has been up in the air because of an issue over spam or fake accounts.

Musk in May put his Twitter takeover "temporarily on hold" because he did not believe Twitter's claim that fake or spam accounts represent less than five percent of users. Musk at the time said that he was "still committed to the acquisition," but he also said that he wanted to look into Twitter's spam account data.

In a notice to Twitter, Musk said that Twitter did not comply with its contractual obligations and that he was not provided with the relevant business information that he requested.

Update: Twitter chairman Bret Taylor says that Twitter's board is "committed to closing the transaction" and plans to pursue legal action to enforce the agreement.



Article Link: Elon Musk Wants to Terminate $44 Billion Twitter Acquisition [Updated]
 
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GMShadow

macrumors 68000
Jun 8, 2021
1,805
7,416
Hahah.

He'll be sued for billions. There stock dropped because of him. People quit because of him. They laid off people because of him.

Musk is the worst

His accusations - sent to the SEC, not the internet - are strong enough to potentially bring about a shareholder revolt and investigation.

Counting banned spam accounts as MAUs is definitely done with intent to deceive.
 

CWallace

macrumors G5
Aug 17, 2007
12,007
10,688
Seattle, WA
This is going to get very expensive for Musk. By announcing the deal is off he triggers a billion "break-up fee" owed to Twitter that he is very unlikely to get out of.

There is also the "specific performance" clause in the agreement which allows Twitter to sue Musk in Delaware court to complete the deal. That is also generally believed to favor Twitter.

And then of course there will be inevitable lawsuits from shareholders (especially institutional ones) who stand to lose billions in Shareholder Value based on where Twitter's share price will end up versus the price Musk agreed to pay.
 

wanha

macrumors 65816
Oct 30, 2020
1,457
4,228
His accusations - sent to the SEC, not the internet - are strong enough to potentially bring about a shareholder revolt and investigation.

Counting banned spam accounts as MAUs is definitely done with intent to deceive.
Do we know this - that Twitter knowingly counted spam accounts as MAUs - as fact or are we just speculating here?
 

CWallace

macrumors G5
Aug 17, 2007
12,007
10,688
Seattle, WA
The board and senior executives may be facing prison time. I'm sure they have bigger things to worry about than your petty revenge.

On what grounds? They had a fiduciary duty to accept his offer once a majority of shareholders agreed to sell the company to Musk.

The board and executives are in a much better legal position in the upcoming flurry of lawsuits than Musk is.
 
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