Musk and Twitter have been at odds over how many accounts on the social media platform are so-called bot accounts. Musk sees that Twitter’s data on the number of accounts is not credible.
Billionaire Elon Musk cancels the 44 billion US dollar Twitter acquisitions, US media reports. A notification of the cancellation has been submitted to the US securities market regulator to the SEC (you switch to another service).
Twitter’s share value fell six percent in after-hours trading in the US as a result of the announcement.
Among other things Washington Post (you will switch to another service) writes that Musk sees that he has the right to withdraw from the deal, because according to him, Twitter has not provided enough information about the company’s operations.
Musk and Twitter have been at odds over how many accounts on the social media platform are so-called bot accounts. Musk sees that Twitter’s data on the number of accounts is not credible.
– Twitter has not complied with its contractual obligations, Musk’s lawyers said in the notification filed with the SEC.
The announcement also says that for nearly two months, Musk has been trying to obtain information to conduct an independent investigation into the prevalence of bot accounts.
Twitter has previously estimated that less than five percent of its users are bot accounts that send automated spam.
Musk also said he was stepping down because Twitter has fired high-ranking executives and a third of its talent acquisition team, in violation of Twitter’s obligation to “maintain substantially intact the essential elements of its existing business organization.”
Billion dollar cancellation clause
– Twitter’s board is committed to completing the transaction at the price and terms agreed with Musk and plans to take legal action to enforce the agreement, Taylor said.
The terms of the binding agreement signed by Musk in April include a payment of one billion dollars if the agreement does not materialize.
The CEO of the electric car company Tesla, Musk justified his April offer with freedom of speech. He said that he wants to reduce monitoring on Twitter and stop, for example, distributing bans on the service.
When the deal is completed, Musk has also planned to cancel the former president of the United States, who is also known for his tweets Donald Trump’s curfew. Musk also stated his goal to quadruple the number of users of the service by 2028.