Tuesday , 21 May 2024
Home Global Economy Elon Musk backs out: Twitter deal over $ 44 billion failed
Global Economy

Elon Musk backs out: Twitter deal over $ 44 billion failed

Elon Musk has announced that he is withdrawing from a proposed $44 billion takeover of Twitter. According to a statement by the US Securities and Exchange Commission, the Tesla founder explained his move by saying that Twitter had violated "several provisions" of the agreement.

The billionaire wrote that the social media company failed to provide information about fake accounts or spam accounts on its platform.

For weeks, the CEO of Tesla and SpaceX had publicly accused Twitter's management of underreporting the number of these accounts, which are critical to the company's business development.

After the news of the failure of the deal, Twitter's shares on the New York Stock Exchange fell by six percent.

It was expected that Twitter's board would not accept the $1 billion transfer fee and that there would be a court battle over the deal.

However, Twitter does not want to accept Musk's withdrawal from the takeover deal. The online service announced that it would enforce the sale at the agreed price and, if necessary, take it to court.

Musk has more than 95 million followers on Twitter. He had repeatedly complained that the platform did not only insufficiently ensure freedom of expression. Above all, supporters of ex-US President Donald Trump, who has been banned from Twitter, also share this view.

Some Twitter users celebrate the failure of the takeover by billionaire Elon Musk.

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