Elon Musk Backs Out Of Deal To Buy Twitter

Elon Musk is always making big business moves, and he wanted to add Twitter to his portfolio, but it seems that deal is not happening.

Musk has officially made the first move to back out of his $44 billion agreement to buy Twitter. The TESLA CEO first tried to ascertain whether his millions of followers think Twitter supports free speech or not. Once his survey concluded that the majority of them didn’t think so, Musk moved forward with the move of buying Twitter.

The Tesla and SpaceX CEO made a filing on Friday via his team. They claim that he had to back out because Twitter was in “material breach.” This was due to making “false and misleading” statements during the negotiation stage of ironing out a deal.

For nearly two months, Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform. Twitter has failed or refused to provide this information.

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Musk’s intent to back out of the deal has been there for a while. It’s been weeks since he claimed that Twitter isn’t providing data on how many fake or spam accounts circulate within the platform.

The agreement might become void if Musk’s claims are right. However, nobody knows whether either party can legally abandon the deal just like that. Spam or bot accounts can possibly serve as a metric of how much inflation is within the real number of users on Twitter.

Twitter has apparently cooperated with Musk’s demands, reportedly giving him the “firehose” access, so he could have the bird’s eye view on every post. They even conveyed to the public that their spam and bot situation is not out of control.

Twitter shareholders could be looking at a potential loss if the deal breaks because they can get $54.20 per share instead of $36.81. The culpable party would also have to cough up $1 billion, so there’s that. Let’s see how both parties handle the situation.

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