Elon Musk renounces the acquisition of Twitter. After several weeks of rumors, in fact, the agreement that provided for the purchase of the social network by Tesla’s number one has failed. The agreement that had been reached between the parties provided for an expense of 44 billion dollars by Elon Musk for the purchase of the entire share package of the social network. At the basis of the choice is the presumed failure to comply with contractual obligations by Twitter.
Elon Musk gives up on Twitter: the details of the case
Elon Musk’s renunciation of Twitter is linked to the social media’s failure to comply with contractual obligations, accused of failing to provide the requested commercial information. Everything would revolve around the number of fake social network accounts. According to the company, the percentage of bots on Twitter would be less than 5%. According to Musk’s point of view, however, Twitter was unable to confirm this finding.
Failure to acquire resulted in a 9% decline in Twitter shares while Tesla was up 3%. For the social network, a long legal battle is now starting to enforce the preliminary contract. Musk, meanwhile, has not yet officially announced the decision to withdraw from the acquisition. Further updates will arrive shortly. The question is, in fact, destined to go on for a long time to come.
We remember that Musk is expected to pay $ 1 billion to get out of the contract but the alleged non-compliance with the contractual conditions by the social network could guarantee Tesla’s number one the possibility of canceling the contract, without penalties.