Elon Musk, a well-known billionaire, revealed in April that he would pay $44 billion to acquire Twitter. A month later, however, the agreement was suspended due to a number of issues. Now that he has publicly informed the firm that he would no longer acquire it, Elon Musk appears to have fully withdrawn from the Twitter acquisition.
According to reports, Musk informed Twitter on Friday that he was “terminating the merger agreement” with the company. Twitter hasn’t “complied with its contractual commitments,” he added. As a result, the billionaire will no longer buy Twitter.
Before Elon Musk announced his plans to purchase Twitter, he had already made a nearly $3 billion investment in the social media network, giving him around 10% of the company’s shares. A few weeks later, in a deal that was planned to close later this year, Twitter accepted Musk’s offer.
Relations between Musk and Twitter.
However, as Musk has frequently criticized the platform for not enabling “total free speech,” most reactions to the announcement were not particularly enthusiastic shortly after the acquisition was disclosed. The billionaire attacked firm employees on Twitter and even claimed to offer verified badges to anyone who provided identification documents.
However, relations between Elon Musk and Twitter weren’t good. The billionaire postponed the acquisition because he disliked of the number of spam and fake Twitter accounts.
Meanwhile, some publications said that this was only an excuse for Musk to refrain from buying the platform. Some people thought Musk couldn’t afford the purchase, while others said he was trying to reduce Twitter’s value to buy the business for less money.
However, Elon Musk has already signed this agreement, so it is unclear at this point if he can back out. Mr. Musk will have to provide evidence that Twitter broke their contract.
There are more reasons Mr. Musk might decide to back out of the agreement.