Elon Musk, the world’s richest man, was initially excited about the Twitter deal. Now it seems that he seems to be running away from it. After 3 months of continuous talks and drama, Elon Musk has decided to cancel this deal.
Elon Musk offered $44 billion to buy Twitter. Elon Musk initially wanted a 9% stake in it. But he later expressed his desire to buy the entire company for $44 billion. But now after the deal is canceled, Twitter has threatened Elon Musk to approach the court.
Reason for Cancellation of Deal
Elon Musk plans to buy Twitter. And he also agreed to pay $21 billion from his fund. But Elon Musk felt that he had offered too much money to buy Twitter. Because today the share price of Twitter is $32.65.
That is, Musk had offered to buy the entire company at a price of $54.20. But today its price has come down by less than a third. Elon Musk says that 20% of Twitter accounts are fake.
— Elon Musk (@elonmusk) July 11, 2022
He wants to get out of this deal by making excuses like this. Twitter’s revenue, cash flow, dividend etc. don’t do justice to the $44 billion deal. For this reason, Elon Musk wants to get rid of this deal.
The recent steep fall in Twitter shares is the main reason for Elon Musk not to buy Twitter. In the first 6 months of 2022, the shares of top billionaire companies have also fallen drastically. Elon Musk’s Tesla is one of them.
Tesla shares have seen a significant decline. Due to which Elon Musk has suffered a lot. For this reason, perhaps Elon Musk has made up his mind not to buy Twitter.
Elon musk had halted the Twitter deal and sought a response from Twitter CEO Parag Agarwal, accusing Twitter of having a massive spam account.
Musk’s legal team said in a US Security and Exchange filing that they wanted to cancel the deal with Twitter. Because Twitter has violated the terms of the agreement. He has given false statements during the conversation.
But Twitter hit back saying that all these allegations are baseless. Twitter is committed to completing its deal with the agreed price and terms. We are planning to take legal action against Elon Musk to complete this agreement.