Tesla CEO Elon Musk has terminated his agreement to acquire social media platform Twitter.
Elon Musk stops the planned Twitter takeover.
After there had been repeated speculation in recent months that Elon Musk wanted to withdraw from the planned Twitter takeover, it is now official: Musk no longer wants to buy Twitter. Musk canceled his agreement to purchase the microblogging service over the weekend, based on a new filing with the Securities and Exchange Commission (SEC).
Twitter wants to sue Musk
Previously, there had been repeated disputes between Twitter and Musk. Musk had complained, among other things, that Twitter did not want to disclose its data on spam bots. In response to the collapsed $44 billion deal, Musk is now being sued by Twitter.
“Twitter’s board of directors is committed to completing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery.”
Twitter chairman Bret Taylor. The social media group is said to have hired the law firm Wachtell, Lipton, Rosen & Katz to save the deal.
Acquisition plans for $44 million
Musk made an initial purchase offer in April. At that time, the board of directors was still trying to prevent the deal. Musk then changed his plan and made $44 billion as his “best and last” offer. As part of the acquisition, Musk promised some changes for the platform. Among other things, he wanted to tackle the ongoing problem with spam bots and fake accounts and block controversial members such as the ex-US President. After the deal was accepted by Twitter, Musk repeatedly skirmished with the board – among other things, because Twitter did not want to disclose the number of fake accounts.