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Elon Musk says he is exiting $44 billion Twitter deal

Elon Musk says he is withdrawing from his $44 billion deal to buy Twitter, putting the social media company’s immediate future in doubt.

In a securities filing Musk on Friday accused Twitter of lying about the number of bots and spam accounts on the platform, as well as failing to provide the content he asked for. This includes detailed data on the number of bot and spam accounts on Twitter, the company’s methodology for counting user numbers, and backup material detailing its financial valuation.

“This information is fundamental to the business and financial performance of Twitter and is necessary for its fulfillment,” the letter said. “Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it’s rejected for unreasonable reasons, and sometimes it’s Mr. Musk.” claims to comply with while providing incomplete or unsuitable information.”

The letter claimed that, despite Twitter’s alleged stonewalling, Musk’s advisers analyzed the number of bots on the platform and determined that Twitter had lied about their spread.

The letter states that “the true number of bots on the platform is “wildly over 5 percent,” citing a preliminary analysis of information provided by Twitter to Musk’s advisors to date.

Twitter has said that as long as it has been a public company, less than 5 percent of users have spam or fake accounts.

Musk said he notified Twitter of its flaws on June 6, which means the time for the company to hand over the information requested is now over. Letter,

Twitter’s board chairman Brett Taylor said the company would take legal action to force Musk to complete the sale.

“The Twitter Board is committed to closing the transaction on the price and terms agreed with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” Taylor said. said on twitter,

Twitter’s board approved the buyout two weeks ago.

Under the acquisition agreement, Musk is on the hook for a $1 billion termination fee if the deal fails.

The Mercurial Tesla founder’s move to abruptly pull the plug on the deal is the latest twist in a months-long drama that pitted the world’s richest man against the globally influential internet company. The contest was largely played out on Twitter, with each side battling for leverage by strategically releasing information on the platform.

Musk has been publicly troubling Twitter about the number of bots on the platform, something that has long been a catchphrase for the social media celebrity with more than 100 million Twitter followers. Musk has also vocally criticized Twitter’s message-posting practices and policies, describing the platform as an important platform for free speech in making its play for the company and suggesting that it be owned by Twitter. Will reverse his ban on former President Donald Trump.

Many technology analysts believe that Musk’s public skepticism about Twitter’s solvency – after entering into a binding agreement to buy it – was a negotiating ploy to buy Twitter more cheaply. . Musk made his initial offer to buy in April, just as the stock market was beginning a prolonged downtrend, reducing the value of Twitter as well as Musk’s personal fortune, much of which is in Tesla stock. .

This story is basically . was published by CBS Newson Friday, July 8 7:04 p.m. PT.

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Reference from www.etonline.com

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