West News Wire: According to a recent Securities and Exchange Commission filing, Elon Musk has canceled his $44 billion purchase of Twitter agreement.

The filing stated that Musk had asked for and not been given the information needed to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.”

The prevalence of bot and spam accounts has caused Musk to threaten to terminate his agreement, which has become a sticking point in his tumultuous acquisition of the social media platform.

Twitter “is in material breach of multiple provisions of that agreement,” according to Musk’s attorney, and it appears that it made “false and misleading representations” when entering into the agreement, according to the filing on Friday.

Twitter Chairman Bret Taylor responded Friday that the board is still committed to the terms of the agreement.

“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,” he said on Twitter. “We are confident we will prevail in the Delaware Court of Chancery.”

Musk reached a deal to purchase the platform at $54.20 a share on April 25, after quickly becoming the largest shareholder of Twitter with a 9.2% stake.

On May 13, he said his plan to buy Twitter is “temporarily on hold,” citing concerns about spam accounts. He shortly clarified that he remained “committed to acquisition,” though the price of Twitter shares closed more than 9% down that same day.

Fake accounts make up less than 5% of users, Twitter stated in a public filing in May while noting that its estimation “may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated.”

Read More
Mujtahidd: Saudi Royal court preparing itself to declare the reign of Bin Salman

Musk, a prolific Twitter user with some 100 million followers, has yet to publicly comment on his plans to end his takeover.

If he walks away from the deal, Musk could be on the hook for a $1 billion breakup fee.

Twitter stock is down about 6% in after-hours trading on Friday.


Please enter your comment!
Please enter your name here