Elon Musk abandons his takeover of Twitter for 44 billion: the social network strikes back
Eva Deschamps / July 12, 2022
Twitter says Elon Musk's abandonment of his plan to buy the platform for $44 billion is invalid and unjustified and claims to have fulfilled all obligations under the agreement reached in April.
The social network therefore requires the multi-billionaire, which accuses Twitter of not meeting the terms of the agreement including not transmitting all the information on false accounts, to keep its commitment, according to a letter addressed to Elon Musk and his representatives and published on the website of the U.S. Securities and Exchange Commission.
Twitter has repeatedly said in recent weeks that the number of fake accounts on its platform was less than 5%. The multi-billionaire and his team believe that the network is lying, and that this affects the viability of its business, and therefore the value of the company.
For weeks, experts have been wondering if Elon Musk was trying to withdraw his offer or renegotiate the price downwards. By ending his commitment to buy Twitter, the businessman exposes himself to significant legal action.
Both parties agreed to pay a severance package of up to $1 billion under certain circumstances. On April 25, he seemed to have succeeded in his bet, despite Twitter's attempts to push him away. He signed a definitive agreement with the group's board of directors to buy the social network for $54.20 per share, or $44 billion in total. Since then, Twitter's stock has lost more than a quarter of its value. Tesla's stock has also plummeted by nearly 25% over that period.