Elon Musk Officially Cancels Twitter Takeover: Now Twitter Is Suing The Billionaire

Elon Musk officially wants to end the takeover of Twitter. As reported by CNBC and The Wall Street Journal — this emerges from a letter that his attorney sent on his behalf to the company’s chief legal officer on July 8, 2022.

In the letter released by the US Securities and Exchange Commission (SEC) — Twitter is accused of failing to meet its obligations to disclose the number of fake accounts.

At the end of April, Musk was going to buy the social network for $44 billion, but then he put the deal on hold until he was convinced that fake accounts and spam bots were less 5% of the total number of Twitter users, according to the company itself. Ultimately, the billionaire came to the conclusion that fake accounts in the aggregate are at least 20% of all users.

Twitter Chairman Bret Taylor announced the company’s plans to sue entrepreneur Elon Musk amid his refusal to acquire the social network.

The company had given Musk access to internal data. According to Twitter CEO Parag Agrawal, Twitter currently deletes one million spam and fake accounts every day.

Taylor is confident of winning the dispute in court. Twitter had already made it clear when Musk had previously suggested cancelling the deal that the company definitely wanted to go through with the sale. Musk wanted to buy Twitter for around $44 billion, which is $54.20 per share — significantly more than what the shares are actually worth.

According to the terms of the agreement, if the deal is abandoned, the entrepreneur must pay $1 billion. The CEO of Tesla and SpaceX is already the largest shareholder in the social network.

Avinash A
Avinash A
Meet Avinash, a tech editor with a Master's in Computer Science and a passion for futuristic tech, AI, and Machine Learning. Known for making complex tech easy to understand, he's a respected voice in leading tech publications and podcasts. When he's not deciphering the latest AI trends, Avinash indulges in building robots and dreaming up the next big tech breakthrough.


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