Elon Musk ends Twitter Deal: Will this ‘dirty truth’ of Twitter break the $44 billion deal, know how much Musk will cost to break the deal
Highlights
- Musk announces cancellation of $44 billion deal to buy Twitter
- Musk said failed to provide data related to fake or fake Twitter accounts
- At least 20 percent of Twitter’s 229 million accounts are fake, according to Musk
Elon Musk ends Twitter Deal: The CEO of Tesla and the world’s richest man is known for his shocking decisions. In April, Musk surprised everyone by saying he would buy Twitter for $44 billion. But now in July, Musk has announced the cancellation of the deal. The interesting thing is that he also announced the cancellation of the Twitter deal on Twitter itself.
What is the ‘dirty truth’ of the cancellation of the deal
While ending this deal, Musk also gave the reason for this. Musk wrote on Twitter that this social media company has failed to provide data related to fake or fake Twitter accounts on its platform. Let us tell you that on May 17, a month after the start of the deal, Musk had asked to cancel the deal due to a fake account. Musk estimated that at least 20 percent of Twitter’s 229 million accounts are fake. The fraud was considered by Musk to be an embarrassment to the reputable firm.
Musk said
His deal to buy Twitter may not go ahead unless the company publicly shows evidence that less than five percent of fake or spam accounts on its platform are accounted for.
Musk had expressed the possibility of 20 percent fake accounts
Musk tweeted in May, saying, “20 percent of fake/spam accounts, which can be four times what Twitter claims, could be quite high. My offer was based on the correctness of Twitter’s SEC filings. Twitter CEO Parag Agarwal declined to publicly show proof of five percent. The deal can’t move forward until they do.”
what will twitter do now
After Musk’s tweet, Twitter board chairman Brett Tylow’s statement has come, he has said that we will go to court to implement the agreement. The agreement includes a provision that could compel Musk to complete the deal. This means that Musk and Twitter may now have a protracted legal battle.
Musk may cost dearly to break the deal
According to the purchase agreement between Twitter and Musk, if the deal is cancelled, Musk will have to pay a break-up fee of $1 billion under the conditions, but Musk cannot escape by paying only the break-up fee. In such a situation, the Twitter deal has become a snarl around Musk’s neck. But given the current situation, Musk is unlikely to return to this deal. However, Musk’s tweet has only hurt the company’s investors. The company’s stock fell 6 percent in the US market on Friday.
Twitter’s top 5 stakeholders
- Elon Musk: 9.2%
- Vanguard Group: 8.8%
- Morgan Stanley: 8.4%
- Black Rock : 6.5%
- State Street Corp.: 4.5%
- Founder Jack Dorsey: 2.3%
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