Tesla CEO Elon Musk announced ending of A $44 billion deal with Twitter Inc, accusing a social media Director of Failed to submit information About fake accounts.
Involved of Twitter fell 6% in extended trading.
In a filing, Musk’s lawyers said Twitter did failed Or refuse to respond to multiple requests for information on Fake or spam accounts on Articles of Association, which is fundamental to the company business performance.
Musk threatened to block the deal unless the company showed evidence that spam and bot accounts were less than 5%. of Users who see ads on The social media Services.
Last month, Twitter allowed Mask access To the “fire hose”, a warehouse of data draft on hundreds of millions of daily tweets.
Twitter did not immediately respond to Reuters’ request for comment.
In a letter to the Securities and Exchange Commission, Musk said Twitter “has not complied.” with its contractual obligations “surrounding the deal, i.e. giving a sufficient catch information To carry out an independent evaluation of Spread of Fake or spam accounts on Twitter platform.
Musk’s courtship with Twitter buy seemed to begin in late March. That’s when Twitter said it called the members of that it board – including co-founder Jack Dorsey – and tell them he’s buying up shares of The company and interested in also joining The boardwith Twitter private, or start a competitor. then, on April 4, revealed in a regulatory Claiming to become the company’s largest shareholder after acquiring a 9% stake worth About $3 billion.
in firstTwitter offered Musk a seat on that it board. But six Days later, CEO Parag Agrawal tweeted that Musk wouldn’t be joining The board after every thing. his attempt to buy The company quickly met after that.
Musk agreed buy Twitter for $54.20 each sharewith the marijuana reference “420” included in its display price. Sold nearly $8.5 billion worth of shares in Tesla help finance purchaseThen he reinforced his commitments of more From 7 billion dollars from a variety group of Investors including Silicon Valley Heavy Hitters like Larry Ellison, co-founder of Oracle.
Inside Twitter, the Musk . Show was met with Confusion and low morale, especially after publicly criticizing Musk one of Share top Twitter lawyers in content-moderation decisions.
As prepared by Twitter executives for bargain for move forwardThe company froze hiring, halted discretionary spending and fired two senior managers. San Francisco company has also has been put off Staff, the latest part of talent acquisition team.
