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Elon Musk looks set to cancel $ 44 billion Twitter deal – SABC News

Elon Musk, CEO of Tesla Inc., said on Friday that he was terminating his $ 44 billion deal with Twitter Inc., saying that the social media company had failed to provide information about fake accounts on the platform.

Shares of Twitter fell by 7% in longer trades.

Musk had offered $ 54.20 a share in April.

In the listing, Musk’s lawyers said that Twitter had failed or refused to respond to numerous requests for information about fake or spam accounts on the platform, which is fundamental to the company’s performance.

“Twitter violates many of the provisions of that agreement, appears to have made false and misleading statements that Mr. Musk relied on when concluding the merger agreement,” the statement said.

The announcement is yet another twist on the story that he does not want to – he, after the richest man in the world signed a $ 44 billion contract for Twitter in April but then put the purchase on hold until the social media company proved that spam programs deliver less. but 5% of its total users.

The terms of the deal require Musk to pay a $ 1 billion fines if he does not complete the transaction.

Musk had threatened to terminate the agreement unless the company showed proof that spam and loan accounts were less than 5% of users who see ads on the social media service.

The decision is likely to lead to a long-running legal dispute between the billionaire and the 16-year-old San Francisco-based company.

Twitter did not immediately respond to Reuters’ request for comment.

Elon Musk looks set to cancel $ 44 billion Twitter deal – SABC News

Source link Elon Musk looks set to cancel $ 44 billion Twitter deal – SABC News

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