Elon Musk Backs Out from USD 44 Billion Twitter Deal

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Elon Musk, CEO of SpaceX and Tesla, and Twitter have been appearing in the headlines for the past few months. 

At first, Musk wanted to buy Twitter for USD 44 billion and then, later on, he put the deal on hold because of alleged bot spamming on Twitter and the hesitation of the social media company to divulge information about the said allegation. Now, he’s terminating the deal.

His team filed with the USA Securities and Exchange Commission stating “material breach of multiple provisions” of the agreement and “false and misleading representations” by Twitter as cause for the termination of the deal. Additionally, the social network is accused of not complying with its contractual obligations towards the deal.

Elon Musk - Twitter update
Source: NDTV.com

Twitter has been ignoring Musk’s request for the important data and sometimes rejected his team for “reasons that appear to be unjustified”. Moreover, the social media company claims they complied but only releases data that is not complete or something that cannot be of use to this case.

Twitter Chairman Bret Taylor responded on Twitter by saying that the company’s board is committed to closing the deal on the price and terms agreed upon by Musk and plans to pursue legal actions to make sure the merger comes to fruition.

As part of the contract, Elon Musk is obligated to pay USD 1 billion break-up to Twitter if he would not go through with the deal. So now, Musk needs to present strong pointers to justify his pulling out of the deal to avoid this break-up fee.

For now, we can only wait for the results of this current situation and if the deal closes or ends.

Source | Featured Image

Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.

Currently he writes for Gadget Pilipinas and Grit.PH.

He is also a musician, foody, gamer, and PC enthusiast.

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