ADVERTISEMENT
ADVERTISEMENT

Twitter wants to sue Elon Musk for bailing on the $44 billion acquisition deal

by | Last updated on Jul 12, 2022 at 5:04PM | Published on Jul 12, 2022 | Lifestyle

Elon Musk pictured with an inset of his Twitter profile.

After weeks of speculation and rumors, Elon Musk has finally made his position clear on Twitter.

He said the deal was “temporarily on hold”, putting his decision down to there being too many fake users on the social platform.

As a result of his backflip, Twitter is now threatening legal action against the world’s richest man.

Here’s a quick summary of what happened

A few months ago Elon Musk said he wanted to buy Twitter and after going back and forth for weeks, the board eventually accepted Musk’s $44 billion offer.

Right from the outset, Musk made it clear that getting rid of spam/fake accounts was a top priority.

He said there was no way of verifying how many of Twitter’s 299m daily users were actually real because a significant number of accounts are bots.

This ended up being his reason for backing out of the deal.

Twitter’s CEO Parag Agrawal responded in a 13-tweet thread, essentially saying that “[the percentage of fake accounts is] all well under 5%”.

Although he had to admit that the platform needed to remove around one million fake accounts every single day.

What now in the ‘Twitter Elon Musk’ situation?

Twitter wants to sue Elon Musk and force him to go through with the deal or pay the difference between the social network’s current evaluation – $28 million – and the agreed price.

This is mostly due to the fact that Musk bailing on the deal made Twitter share price tank.

On the other hand, Musk said he specifically asked Twitter to disclose the number of fake accounts on multiple occasions, including in his filing with the US Securities and Exchange Commission (SEC).

Twitter reportedly failed to do that.

Legal experts are divided on this.

Some believe that Musk may have done this to negotiate a lower price in court, while others argue he may end up losing the lawsuit and be forced to pay up.

One thing’s for sure, there’s never a dull moment when it comes to Elon Musk.

FOLLOW US ON
FOLLOW US ON GOOGLE NEWS

Check this out

This Corvette C8 widebody kit costs the same as a family car

This Corvette C8 widebody kit costs the same as a family car

This is a widebody kit designed by Liberty Walk specifically for the Chevy Corvette C8 Stingray. It's crazy cool, but it costs the same as your average family car. Image: Liberty Walk READ MORE: The Drako Dragon is 2,000-hp super SUV that’s faster than most supercars...

ADVERTISEMENT

Most Popular This Week

PAID CONTENT

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!