World’s richest man, Elon Musk, is terminating his $44billion bid to buy microblogging social media platform, Twitter, alleging that the company has breached its own side of the pre-purchase agreement.
Musk first announced that he was purchasing Twitter in April, but soon began to foot-drag after asking the company to assure him that millions of accounts weren’t fake accounts.
He says he is now backing out of the deal because Twitter has failed to provide sufficient information on the number of spam and fake accounts.
Musk would now have to pay Twitter $1billion for backing out or be slammed with a lawsuit; with Chairman of the Twitter board insisting that the sale must go on.
The billionaire businessman had requested for evidence to back the company’s assertion that spam or bot accounts make up less than 5% of its users.
Musk’s lawyer now claims that Twitter has failed to come up with that evidence.
Twitter shares were down by 7% in the wake of Musk’s pullout game.