Elon Musk received a flood of free speech from the Twitterverse after he informed the social media platform that he wanted to cancel his $44 billion acquisition transaction.
Twitter received a letter from the right-wing Twitter power user’s attorneys on Friday informing them that they could no longer honor the April agreement because Twitter “appears to have made false and misleading representations,” including “dramatically understating the proportion of spam and false accounts.” It is unknown why the richest person in the world did not perform due diligence on this matter before signing a purchase deal.
According to Wall Street experts, given the stock market’s precipitous year-to-date loss, Musk was actually looking for a cheaper price tag. Twitter announced on Friday that it would file a lawsuit to compel Musk to uphold the conditions of his original offer.
Without providing any concrete evidence, Musk has been worried for weeks that there are more spam and bot accounts on the network than Twitter has officially acknowledged. Given the recent declines in Twitter shares and the larger tech industry, analysts have hypothesized that the worries could be an attempt to fabricate a reason for the buyer to back out of a deal that he may now perceive as being expensive.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,”
Twitter board chair Bret Taylor
After losing 5% during regular trading hours on Friday, Twitter shares dropped close to 6% in after-hours trading right after the news. In trading after hours, Tesla stock rose more than 1%.
