- EWC Community
Elon Musk is backing away from the deal to buy Twitter
By: Alvin Fang
Elon Musk, founder of rocket company SpaceX and CEO of electric car company Tesla has decided to back out from his deal of buying Twitter.
Musk claims that he backed out because Twitter failed to provide enough information on the number of spam and fake accounts.
Twitter has publicly said it estimates less than 8% of everyday users who see ads are bots (but also could be higher) however Musk says that he thinks as many as 20% of accounts must be fake.
In May, Musk said that the deal was “on hold for now” as he was waiting for data on the number of fake accounts on Twitter.
Twitter has decided to sue Musk because Musk refuses to honor his responsibilities to Twitter and its stockholders. After all, the deal he signed no longer serves his interests.
“Oh the Irony lol,” Elon Musk tweeted.
Musk announced plans to purchase Twitter for $54.20 per share in April. The stock was trading at just over $34 per share at Tuesday’s close, which is nearly 37% lower than Musk’s bid.