Back in April, Elon Musk committed to acquiring the social media platform for $54.20 per share. Now, the SpaceX owner wants to back out of his plans of buying Twitter, but, there is a tiny issue to it. If Musk decides against the deal of buying Twitter, then the billionaire would have to pay a $1 billion fee.
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Elon Musk is ready to bail out on the Twitter deal after all.
The SpaceX billionaire is ready to back out of his $44bn deal to purchase Twitter, Reuters reported today (July 8), citing a filing by Musk's lawyers.
The filing claims that "Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company's business performance," Reuters wrote
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The Twitter deal that was announced back in April showed that Tesla owner Elon Musk wanted to acquire social media platform Twitter for $54.20 per share.
However, he soon stopped midway, stating that he wouldn't go through with the purchase until Twitter showed that bots — fake or spam accounts — make up less than 5% of its users.
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Apparently, Twitter is yet to meet Musk's condition.
"Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement," the filing states, according to Reuters.
Twitter has its own views on the matter, of course. And they don't align with Musk's.
"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery," Twitter Chairman Bret Taylor tweeted this evening
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The purchase deal entails that Musk must pay a $1 billion fee if he ends up backing out. However, we wonder if the world's richest person will splurge out this cash without a fight?
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