Elon Musk Twitter Deal No More? Tesla CEO Backs Out of $44 Billion Buyout
Elon Musk terminated his billion-dollar deal with Twitter on Friday, prompting the social media company to threaten the Tesla mogul with legal action.
According to DW, Musk terminated his $44 billion bid with Twitter through a letter addressed to the company's board.
In the letter, Elon Musk accused Twitter of lying about the number of bots and spam accounts on the social media platform, according to CBS News.
"This information is fundamental to Twitter's business and financial performance and is necessary to consummate," Musk's letter said.
The letter claimed that the advisors of the Tesla mogul analyzed the number of bots on the platform, and they found a number "wildly higher than 5%". Twitter has previously claimed that fewer than 5% of its users are spam or fake accounts.
Musk's buyout also claimed that Twitter failed to provide Musk with the materials he asked for, including the company's methodology for calculating its user numbers and backup materials detailing its financial valuation.
"Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk's requests, sometimes it has rejected them for reasons that appear to be unjustified," the letter further noted.
Musk's letter also specified that Twitter sometimes claims they complied with what the Tesla CEO has asked, but they gave out "incomplete or unusable information."
The letter underscored that the SpaceX founder notified Twitter about their lapses on June 6, and the time for the company to hand over the information has expired.
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Twitter to Sue Elon Musk to Continue With the Billion-Dollar Deal
Twitter will resort to legal actions if Musk does not push through with his deal with the social media company.
On Friday, Twitter chairman Brett Taylor said they are "committed" to continuing their transaction with Elon Musk.
"[Twitter] plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery," Taylor pointed out. One Twitter shareholder also expressed what he thought about Elon Musk's move regarding the deal.
"As a shareholder, I am hoping that @elonmusk just pays a hefty penalty to get out of the deal," Richard Signorelli said, adding that he does not want Elon Musk to own the social media company.
Musk will have to pay a $1 billion termination fee if the deal falls out.
Elon Musk Buys Twitter
In April, Elon Musk bought Twitter after the social media company accepted an offer from the Tesla CEO.
Musk previously said in a statement that he wanted to make the social media platform "better" by enhancing the product with new features and making the algorithms of Twitter an open-source to increase trust.
The said deal between Twitter and Elon Musk had a cash deal worth $54.20 per share, which is valued at around $44 billion.
However, DW claimed that Musk has wavered between doubling down his interest in buying the company and threatening to walk away from the deal.
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Written By: Joshua Summers
WATCH: Elon Musk Terminates Deal for Twitter - From Bloomberg Technology