Musk withdraws $44bn bid to acquire Twitter
Billionaire Tesla owner Elon Musk has withdrawn his $44bn (£36.2bn) bid to buy Twitter, alleging multiple breaches of the merger agreement.
Mr Musk’s legal team claimed the social network’s bosses misled him on the number of ‘spam bots’ , or fake accounts, on the site.
In a letter to the Securities and Exchange Commission, Skadden Arps attorney Mike Ringler said: “Twitter has not complied with its contractual obligations. For nearly two months, Mr. Musk has sought the data and information necessary to make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.”
Twitter’s board last month voted unanimously to accept Musk’s offer. He now faces a $1bn (£830m) break-up fee and possible lawsuit by opting out.
Its shares were trading about 5% lower at the time of the announcement.
Since Musk initially agreed to purchase the company at $54.20 a share, Twitter’s stock price has fallen to $36.81, shaving some $14 billion off its total value.