Tesla CEO Elon Musk is no longer interested in buying Twitter. Musk made his decision known by filing a letter with the Securities and Exchange Commission. The world’s richest person had his $44 billion bid for the popular social media platform accepted back in April.
According to Musk’s letter, Twitter “is in material breach of multiple provisions” of the deal and “has not complied with its contractual obligations.” Musk singled out the company’s refusal to give him data about fake and spam accounts and firing of “two key, high-ranking employees” and “a third of its talent acquisition team.”
Twitter, on the other hand, is unlikely to accept Musk’s withdrawal. The company’s chairman Bret Taylor already announced that the company remains committed to the deal and “plans to pursue legal action to enforce the merger agreement.”
This looks like just the beginning of the Musk vs. Twitter saga. The most likely scenario will be a long and messy legal battle that will see Musk trying to prove he pulled out of the deal fair and square while Twitter will try to make him complete it. There is a chance that the company will at least try to get its hands on the $1 billion break-up fee stated in the contract.
After the news broke out, Twitter shares plunged five percent in extended trading. The stock dipped as low as $34.04 before bouncing to $34.78. This marked its lowest point since May.