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Elon Musk Takes Back 44 billion Dollar Offer to Buy Twitter
By: Catherine Wang
Just about 3 months ago, Elon Musk announced the shocking news that he wanted to buy Twitter for $44bn! But in April 2022, Musk announced that he would be backing out of the deal. He cited his reason as not having enough information on the fake and spam accounts on Twitter. Twitter replied by saying that they will take legal action to seal the deal.
Twitter’s chairman Bret Taylor tweeted on July 8, 2022, saying that, “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
Now that Musk will be taking back the offer, the contract Twitter and Musk made will force him to pay $1bn to the court for a break-up fee.
In May 2022, Musk said that the offer is now on hold as he waits for data on the bots and spam accounts on Twitter. Musk’s lawyer stated that Twitter either failed or refused to give this information.
In a letter sent to the US Securities and Exchange Commission, Musk’s legal team claimed, “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
Many questions are still circling the take back of the deal as Musk tries to get more information from Twitter about deleting spam accounts, how many users they have, and how many users sign up daily. For now, we can only wait to see what will happen. Will Twitter be bought, or will Elon Musk rescind the offer permanently? No one knows.