Market Updates
Musk Backs Out of Twitter Bid Over Fake Accounts
Scott Peters
09 Jul, 2022
New York City
Elon Musk announced his decision to terminate his $44 billion bid for Twitter blaming the company not providing information on the number of fake accounts.
The deal has been a suspect right from the get go and investors questioned the financial viability of the transaction.
The latest move by Musk appears more as a negotiating tactic to either not complete the deal or engage in a drawn out legal battle and negotiate a lower breakup fee.
Elon Musk has agreed to a breakup fee of $1 billion.
Twitter immediately shot back and said it will pursue Musk and enforce the terms of the agreement.
"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 the merger agreement.
We are confident we will prevail in the Delaware Court of Chancery," said the social media's board member Bret Taylor on his Twitter account.
The social media platform with more than 200 million user base is a target of several spam attacks and bot account operators.
On Thursday, the company executives asserted that fake or spam accounts are less than 5% of its active userbase each quarter and the company removes more than 1 million spam or fake accounts everyday.
For nearly two months Musk has been asking for more details on spam or bot accounts and his requests have either not been answered or ignored or the company has provided information with strings attached rendering them useless, said Mike Ringler in a letter to Twitter board and posted on the SEC's website.
"This information is fundamental to Twitter
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