Elon Musk cancels Twitter acquisition

Billionaire Elon Musk announced that he would cancel the deal to buy Twitter on the grounds that the social network provided false information about users.

Elon Musk cancels Twitter acquisition

In a filing with the Securities and Exchange Commission (SEC) on July 8 (US time), Tesla CEO Elon Musk said he would not continue to pursue the plan to buy the entire Twitter social network worth $44 billion.

The reason given by the billionaire is that Twitter violated the acquisition agreement by disclosing false information about the user situation. Earlier, in May, Mr. Musk announced that he was suspending the Twitter deal to verify the social network's claim that "spam/fake accounts account for less than 5% of total users".

Musk's side stated in the filing with the SEC that he believes the number of virtual users is in fact more than 5%. The billionaire's representative wrote:

"Mr. Musk chose to terminate the acquisition because Twitter violated many of its provisions, provided false information that affected decision-making, and was highly likely to backfire on the company."

"Preliminary analysis from Mr. Musk's advisor from information provided by Twitter shows that the actual number of fake and spam accounts is much higher than 5%."

"For nearly two months, Mr. Musk has requested the necessary information and data to perform independent calculations on the number of fake and spam accounts on the Twitter platform. Twitter has refused and refused to release this information."

In response, Twitter's board said it was "still confident" in the deal and would ask Musk to fulfill his obligations.

"We are determined to execute the transaction at the purchase price and terms as agreed with Mr. Musk, and are ready to take legal action to enforce the agreement."

In the past, in May 2022, billionaire Elon Musk said he would buy 100% of Twitter's social network for about $ 44 billion.

Musk's goal is to take Twitter back to being a private company. According to him, only by doing so, the Twitter team has enough decision-making authority to address issues related to the platform, from fake news to spam users and bots. Mr. Musk affirmed that he will still uphold freedom of expression on Twitter and will return the social network to a public company after fixing all shortcomings.

It has been reported that during the takeover, Elon Musk will also sit in the chair of Twitter CEO. The crypto community expects that this change will also lead to Twitter being more proactive in accepting crypto instead of just supporting the integration of BTC, and ETH wallet addresses and setting NFT avatars. Recently, there has been speculation that Elon Musk intends to accept payment for some social network services with Dogecoin (DOGE).

To earn money to buy back Twitter, the billionaire raised capital from many different organizations, including $500 million from the world's largest cryptocurrency exchange Binance.

Twitter's stock price ended Friday's trading day at $36.81, down 5% in 24 hours. The current price of TWTR stock is up to 32% lower than the $ 54.20 price Musk offered to buy the entire social network.