Elon Musk backed out of his deal to buy Twitter for $44 Billion on Saturday, 9th July after the social media company refused to share vital data about the use of spam accounts and bot accounts.
Key Points:
- Elon Musk refuses to buy Twitter for $44 billion after the company refused to share vital data about spam accounts and fake accounts.
- The lawyers of Elon have cited the “Material Adverse Effect” as a legal issue.
- Elon has decided to go for renegotiation of the deal instead of fully backing out, as long as he gets the “data” he needs.
Earlier this year in April, Elon Musk, the world’s richest man, decided to buy Twitter for a whopping $44 Billion. His aim – is to make the platform a better place for open discussions. In his speech, he planned to “eliminate the use of fake and spammy bot accounts.”
In his words, the removal of fake accounts would ensure that Twitter becomes a safer place for open discussions to take place, enhancing its algorithm to be geared more towards free speech.
However, after months of negotiations, Elon finally terminates the buyout on 9th July,2022. He has stated that Twitter has refused to share data with him regarding the use of fake accounts and spam bots. He said that these bots played a major role in influencing the opinions of people during both the US Presidential elections of 2016 and 2020.
The lawyers of Elon Musk have stated that Twitter refused to share this information, in spite of their buyout agreement clearly stating full disclosure of information to Elon. They also cited the “Material Adverse effect” as a legal reason – which means that they are accusing Twitter of altering the terms of negotiation, which can cause financial harm to Elon.
However, Twitter in turn has planned to sue Elon for termination of the agreement. Twitter’s lawyers have reportedly sued Elon for $1 Billion for termination of the agreement. This has put Elon in a debacle, the fate of which remains to be seen.
But Elon seems to be pretty confident about his Twitter deal. In fact, hr even shared this meme upon hearing that Twitter has decided to sue him.
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