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Elon Musk wants to terminate Twitter’s millionaire purchase deal, making stock fall 6%

Elon Musk claims Twitter has been refusing to share truthful information regarding spam bots.

Mogul and billionaire Elon Musk has announced he wants to pull out of the 44-million-dollar agreement to buy Twitter claiming the social media company gave him misleading data and information regarding the number of bots and fake accounts on the platform.

In a filing made this Friday afternoon to Twitter’s legal team and the Securities and Exchange Commission, Musk’s team alleged that “Twitter has not complied with its contractual obligations.” According to the letter, Musk has been pushing Twitter to give him the correct data for the past two months, but the company has allegedly “failed or refused to provide this information.”

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The news of Musk’s attempt to pull out of the deal has made Twitter’s stock fell almost 7% causing havoc in the market. Now, this isn’t really news. Elon Musk has been trying to terminate the deal for months; he actually started talking about not being sure he would follow up with the deal just weeks after announcing he had offered 44 million dollars. His reasons have been the same since then, he thinks Twitter won’t share accurate information regarding spam bots on the platform.

The company, on the other hand, has claimed that they have done everything to comply with Elon Musk’s demands and requests. As far as early June, they agreed to open up the ‘firehose’ access of their service to allow Musk to analyze every single tweet posted by him. They also declared that they have the bots and spam situation under control with only 5% of their active users being of that nature.

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Now, Musk can’t just back off the deal simply because he already signed an agreement to purchase the company for 44 million dollars. According to this agreement, he would have to pay a billion dollars of compensation for terminating the agreement if he fails to prove that Twitter breached their agreement (this was added as security for both parties).

Twitter can now push Musk to fulfill his agreement on its original terms mainly because after his declarations in the past months about wanting to terminate, the company has fallen considerably. When Musk made the offer, Twitter was at 54.20 dollars per share, today, after the filing it is 36.81 dollars.

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