Elon Musk, the world’s richest man, has backtracked on his decision to buy Twitter for $44 billion. Musk had April offered to buy the microblogging platform 100% at $54.20 per share. Twitter board accepted the offer, but set a series of condition the acquirer must undertake.
Elon Musk notified Twitter of its decision to back out from via a disclosure to the US Security and Exchange Commission. His claimed Twitter failed to comply with its contractual obligations to provide him and his advisors with all data and information needed to consummate the acquisition.
He maintained that the information he sought was critical to Twitter’s business and financial performance, meant to facilitate his financing and financial planning for the transaction, and also for the purpose of transition planning for the business.
However, Twitter denied the allegations. Twitter said its board was “committed to closing the transaction on the price and terms agreed upon with Musk and will seek legal action to conclude the transaction.
Elon Musk is expected to pay Twitter $1 billion if he walks away from the deal. However, this is subject to conditions in the agreement, which Musk says does not compel him to pay anyone compensatory money to Twitter.
