Elon Musk Pulls Out of $44bn Bid to Purchase Twitter

Billionaire Elon Musk says he is aborting the deal to acquire Twitter due to multiple breaches of the merger agreement.

The deal has been in a delicate condition since May when Musk put a “temporarily on hold” on the incubation of the deal as he was waiting for Twitter to provide data on the number of fake, bot, and spam accounts on the platform.

The billionaire businessman had asked for evidence to back the company’s assertion that spam bot accounts make up less than 5% of its total users.

Musk faces a $1B prophylactic “break-up fee” and possible litigation for terminating the deal. Twitter says it plans to pursue legal action to enforce the agreement.

Twitter’s board chair, Bret Taylor, said in a tweet, “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,” 

Shares in Twitter fell by 7% in extended trading after the announcement.

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