Elon Musk announced on the afternoon of today, July 8, that he is withdrawing from the purchase of Twitter… although, to tell the truth, it is not news that surprises many. Since the purchase promise was announced in April this year, the deal has hit all sorts of bumps. The main reason why the purchase had not been closed is because Musk argued that there were many bot accounts on the social network; the same reason why he gave up the purchase today.
Days after the purchase of Twitter was announced, the billionaire left the contract in limbo when he explained that “he was considering it” until the social network gave him real data about the users that the platform hosts. For its part, the Twitter team argued that the data that had been delivered was real. Finally, in early June, the social network agreed to share all of its data with Elon Musk.
This morning, the world woke up to the news that the deal was being further diluted because Musk’s team had determined that there is no effective way to know exactly how many bot and spam accounts the platform has. . Said like this, the price of the social network would not be the one that was negotiated at the beginning ($44,000 million dollars) but would be much lower.
It may interest you: Twitter would finally share its internal (real) data with Elon Musk
Today, the team of lawyers filed with the SEC (United States Securities and Exchange Commission) the legal document to undo the purchase agreement; which follows the same line of previous months. Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement. He appears to have made false and misleading representations relied upon by Mr. Musk in entering into the merger agreement, and he is likely to suffer a material adverse effect on the company.”
“For nearly two months, Musk has sought the data and information necessary to make an independent assessment of the prevalence of fake or spam accounts on the Twitter platform. Twitter has failed or refused to provide this information.” He added the SpaceX CEO’s legal team.
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