Elon Musk Dismisses Twitter Purchase Deal – Let’s Know Why?

Elon Musk Dismisses Twitter Purchase Deal – Let’s Know Why?

2022-07-10 | Selina Mathew

Elon Musk Dismisses Twitter Purchase Deal – Let’s Know Why?

Back on April 24th, the Twitter board made a deal with the owner of Tesla company Elon Musk to sell the company for 44 billion dollars. This move took the world by storm. The deal which was made one month ago is however set to be terminated by the business giant Elon Musk due to the following reasons:

  1. As per Elon musk’s lawyers, the microblogging company (Twitter) had failed to provide them with the right information about the number of fake and spam accounts on their platform. Twitter estimated the spam accounts to be 5 percent of the total accounts but the Tesla owner claims the figures are wrong.
  2. Twitter also removed two of its eminent employees without Elon Musk’s consent which he saw as a breach of regulations.
  3. At first Elon Musk envisioned that this deal would add value to his businesses by getting rid of spam accounts, but for the same reason he decided to terminate the deal.

Twitter has filed a strong lawsuit against Elon musk for walking away from this deal. The Twitter representative was ready to fight in the court of law so that the deal can be completed. However, the deal fell through with Elon musk agreeing to pay 1 billion dollars as compensation for the fallout.

Consequences Of The Above Fallout

  • The company's future has become uncertain with its stocks declining by 15 percent.
  • Twitter's shares went down by 7 percent which made a huge loss to the company's economy.
  • While Twitter went into loss, Elon Musk's Tesla has seen a rise in its shares.
  • Twitter removed the social media account of Elon Musk.

In the month of March itself, Elon Musk had queries about the number of bot accounts. Twitter was asked to provide genuine information about it which they failed. Initially, Elon Musk saw Twitter as a platform to practice freedom of speech, but due to the unsettled arguments between the companies, the deal ought to be called off. The above-mentioned claims and the inability of Twitter to prove itself in court might lead to a long legal tussle.

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