News

Elon Musk terminates Twitter deal; gives reasons

Elon Musk is formally ending his $44 billion bid to buy Twitter.

In a fresh SEC filing on Friday July 8, Twitter shared a letter it received from Elon Musk’s legal team indicating displeasure with the company’s offered information regarding the level of “spam and fake accounts” on its service. 

“Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect,” Musk’s lawyers wrote in a letter to Twitter’s Chief Legal Officer Vijaya Gadde.

Musk points to his repeated claims that Twitter is likely misleading investors and users about the number of automated accounts on its platform, which the company has long estimated to be under 5 percent.

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