Elon Musk Wants to Terminate $44 Billion Twitter Acquisition [Updated]

[MacRumors]

Elon Musk no longer plans to purchase Twitter for $44 billion, according to Reuters. Musk told Twitter this evening that he is calling off the deal because of "material breach of multiple provisions of the agreement."

Back in April, Musk offered to buy Twitter for $54.20 per share, and Twitter agreed to accept the offer in late April. Since then, the deal has been up in the air because of an issue over spam or fake accounts.

Musk in May put his Twitter takeover "temporarily on hold" because he did not believe Twitter's claim that fake or spam accounts represent less than five percent of users. Musk at the time said that he was "still committed to the acquisition," but he also said that he wanted to look into Twitter's spam account data.

In a notice to Twitter, Musk said that Twitter did not comply with its contractual obligations and that he was not provided with the relevant business information that he requested.

Update: Twitter chairman Bret Taylor says that Twitter's board is "committed to closing the transaction" and plans to pursue legal action to enforce the agreement.

https://twitter.com/i/web/status/1545526087089696768

Article Link: Elon Musk Wants to Terminate $44 Billion Twitter Acquisition [Updated]

 

[Motionblurrr]

Embarrassing just like Tesla’s cars.

 

[FrozenDarkness]

twitter is lucky elon didn’t just say “coming soon”

 

[GizmoDVD]

Hahah.

He'll be sued for billions. There stock dropped because of him. People quit because of him. They laid off people because of him.

Musk is the worst

 

[kerplunknet]

‎

 

[GMShadow]

Hahah.

He'll be sued for billions. There stock dropped because of him. People quit because of him. They laid off people because of him.

Musk is the worst

His accusations - sent to the SEC, not the internet - are strong enough to potentially bring about a shareholder revolt and investigation.

Counting banned spam accounts as MAUs is definitely done with intent to deceive.

 

[Rafterman]

I'm sure twitter's significant stock drop had nothing to do with it.

 

[btrach144]

Elon is a looney and an example of too much money making someone lose their mind.

 

[coachgq]

Was it his plan all along?

I’m sure he was shorting the stock for a while.

 

[GadgetBen]

Wise decision. Phoney excuse that I’m sure the lawyers will argue.

The real reason is due to the significant stock market downturn after the price had been agreed.

 

[The Clark]

Lost all respect for Elon when he went oh his WFH diatribe. Guy's nuts.

 

[easy4lif]

Pump and dump, that’s all he’s about!

 

[imlovinit]

I wish this guy would fall back and stop his insane trolling.

 

[IsaacM]

This man child is the epitome of an attention whore.

He did successfully get the attention away from the sexual abuse allegations made against him.

 

[0092762]

They should let him terminate the deal with the stipulation of banning him from twitter. That would hurt him a lot. He can join his buddy Trump at truthsocial.

 

[GMShadow]

They should let him terminate the deal with the stipulation of banning him from twitter. That would hurt him a lot.

The board and senior executives may be facing prison time. I'm sure they have bigger things to worry about than your petty revenge.

 

[DHagan4755]

There is something good that's come from this though. Musk truly exposed the extreme left wing bias running the company that favors censoring opinion it doesn't like.

 

[0092762]

The board and senior executives may be facing prison time. I'm sure they have bigger things to worry about than your petty revenge.

Twitter is far more likely to have done their due diligence than Elon.

 

[CWallace]

This is going to get very expensive for Musk. By announcing the deal is off he triggers a billion "break-up fee" owed to Twitter that he is very unlikely to get out of.

There is also the "specific performance" clause in the agreement which allows Twitter to sue Musk in Delaware court to complete the deal. That is also generally believed to favor Twitter.

And then of course there will be inevitable lawsuits from shareholders (especially institutional ones) who stand to lose billions in Shareholder Value based on where Twitter's share price will end up versus the price Musk agreed to pay.

 

[wanha]

His accusations - sent to the SEC, not the internet - are strong enough to potentially bring about a shareholder revolt and investigation.

Counting banned spam accounts as MAUs is definitely done with intent to deceive.

Do we know this - that Twitter knowingly counted spam accounts as MAUs - as fact or are we just speculating here?

 

[mikethemartian]

It was pretty obvious.

 

[djcerla]

What a clown. Disappointing.

 

[blueeyes2die4]

Thank God!!!

 

[CWallace]

The board and senior executives may be facing prison time. I'm sure they have bigger things to worry about than your petty revenge.

On what grounds? They had a fiduciary duty to accept his offer once a majority of shareholders agreed to sell the company to Musk.

The board and executives are in a much better legal position in the upcoming flurry of lawsuits than Musk is.

 

[Jumpthesnark]

Glad this deal appears to be falling apart. Though I don't know what he'll do to satisfy his apparently bottomless need for attention now.