BusinessElon Musk backs out of Twitter deal

Elon Musk backs out of Twitter deal

Elon Musk, founder of Tesla and SpaceX and the world’s richest man, has pulled out of a $44 billion deal to buy Twitter.

According to the BBC, Elon Musk’s reason for withdrawing from the agreement was that the Twitter administration had failed to provide the required information about the number of spam and fake accounts.

The latest announcement marks a new twist in months after Elon Musk decided to buy Twitter in April.

In May, Elon Musk said he had temporarily suspended the purchase of Twitter because he was waiting to find out the real number of fake and spam accounts on Twitter.

Read also: Elon Musk announces suspension of Twitter deal

He sought evidence to support the company’s claim that spam and bot accounts accounted for less than 5% of its total users.

In a letter to the US Securities and Exchange Commission, Elon Musk’s lawyer said Twitter had failed to provide the information or denied it.

The letter said: “Twitter ignored Elon Musk’s requests, sometimes rejecting them for reasons that seemed unfair, and sometimes the company provided Elon Musk incomplete or unusable information.

It is believed that this development came at thst time when Twitter said two days ago that about 1 million spam accounts are removed from the micro-blogging website every day.

Read also: Elon Musk Acquires Twitter for $ 44 Billion

Elon Musk estimates that 20% or more of the Twitter users may be spam or bot accounts.

Shares of Twitter have fallen 7% since the announcement, with Twitter saying it intends to take legal action to enforce the deal.

Twitter chairman Brett Taylor hinted at a long-running legal battle between the two sides, saying in a tweet that the Twitter board was committed to ending the deal with Elon Musk at a set price and terms.

According to the agreement, Elon Musk will be obliged to pay $ 1 billion as a bank fees if he changes his mind about buying Twitter.

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