Elon Musk pulls out of $44 billion offer to buy Twitter
By: Allan Wang
Recently, back in April, Elon Musk offered Twitter $44 billion USD to buy Twitter. Twitter agreed, but recently, Musk has suddenly backed out. He claimed it was because Twitter failed to provide information on bot/spam accounts on Twitter. Twitter plans on following legal action to get him back in and claimed they were close to completing the deal settling on terms.
So why did he back out? What does he mean when he says they failed to provide information on spam and fake accounts? The reason was because he was trying to get information on daily active users for Twitter. The only problem was there are a lot of bot/spam accounts on twitter. In fact, Twitter recently mentioned that they remove over 1 million spam accounts every day. Elon claimed that he had repeatedly requested information on the number of bot accounts on Twitter, only to be refused each time. Thus, he wanted to back out. However, he has already signed the deal, so it’s unclear whether he actually can back out completely.
There may be other reasons on why he backed out, though. The stock market prices for tech companies such as Twitter have fallen off recently, so he may be regretting offering so much money. Besides this, when he announced his desire to purchase Twitter, Tesla stock prices began to fall – significantly.