Elon Musk, the richest man in the world and the CEO of Tesla, announced on Friday that he was ending his 44Â billion dollar contract with Twitter because the social media firm had not provided information regarding fake accounts on the network.
Twitter’s stock decreased 6% during extended trading.
Musk’s attorneys said in a document that Twitter has ignored or refused to reply to several requests for information on fake or spam accounts on the site, which is essential to the operation of the firm.
Musk had threatened to call off the transaction unless the business could demonstrate that less than 5% of members on the social media platform were made up of spam and bot accounts.
Last month, Twitter gave Musk access to its “firehose,” a database of unprocessed information on hundreds of millions of tweets each and every day.
Musk must pay a USD 1 billion break-up fee under the terms of the agreement if the sale is not completed.
In these conditions, Twitter may have pressed for a USD 1 billion breakup fee that Musk consented to pay. Instead, it appears prepared to put up a battle in order to close the purchase, which the company’s board has authorised and CEO Parag Agrawal has adamantly stated he wants to do.
Musk appears to start considering purchasing Twitter in late March. At that point, according to Twitter, he allegedly got in touch with the firm’s board members, including co-founder Jack Dorsey, and informed them that he was buying up shares and was considering either joining the board, taking Twitter private, or founding a rival business. Then, on April 4, he disclosed in a regulatory filing that he had acquired a 9% interest in the business, making him the largest stakeholder.
Twitter first offered Musk a position on its board. Six days later, however, Musk announced in a tweet that he would not be joining the board after all. After that, his acquisition proposal for the business rapidly came together.
He raised an additional USD 7 billion from a variety of investors, including well-known figures from Silicon Valley like Oracle co-founder Larry Ellison, by selling around 8.5 billion dollars worth of shares in Tesla.
News From: CRUCIAL NEWS GLOBAL
Image Credits: All4
💫FOLLOW US FOR MORE UPDATES. ❌WE DO NOT HAVE IRRITATING AND SPAMMY NEWSLETTERS. ✅EVERYTHING IS AND WILL BE FREE FOREVER. SEE YOU AGAIN IN YOUR STORIES AND FEED 🙂
