International

Elon Musk Backs Out Of $44bn Twitter Deal

Published

2 years ago

Jul 9, 2022.

Yinka Akanbi

Musk’s $44 billion deal was confirmed in late April after he spent nearly three months buying up Twitter shares to increase his stake in the company
At the time, the billionaire said he wanted to “make Twitter better than ever by enhancing the product with new features

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EKO HOT BLOG reports that billionaire Elon Musk called off his deal to buy social media company Twitter, according to a filing on Friday with the Securities and Exchange Commission.

Skadden Arps attorney Mike Ringler said in a letter to Twitter’s chief legal officer that “Twitter has not complied with its contractual obligations.”

For nearly two months, the company has failed to provide Musk with information about fake or spam accounts, the letter said.

“This is a disaster scenario for Twitter and its Board as now the company will battle Musk in an elongated court battle to recoup the deal and/or the breakup fee of $1 billion at a minimum,” said Daniel Ives, senior equity Research Analyst at Wedbush Securities.

Musk’s $44 billion deal was confirmed in late April after he spent nearly three months buying up Twitter shares to increase his stake in the company.

FURTHER READING:

At the time, the billionaire said he wanted to “make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.”

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