Elon Musk, the world’s richest man, has finally canceled the deal to buy Twitter. On April 25, Elon Musk offered to buy this micro-blogging site for $ 54.20 billion, but the deal was settled for $ 44 billion.
Billionaire Tesla chief Elon Musk’s team has sent a letter to Twitter. The letter cited several breaches of the purchase agreement. After the cancellation of this deal, Twitter is now preparing to sue Elon Musk. Twitter’s shares fell up to 7 percent after Musk’s announcement.
So the deal canceled
According to the news of Reuters, the Tesla CEO has blamed Twitter for the cancellation of the deal. World’s richest man Elon Musk says Twitter failed to provide information about fake accounts. Along with this, there have also been serious allegations of breaking many conditions of the merger agreement.
Twitter company will go to court
At the same time, after the deal was canceled, Twitter said that it would go to court. Board Chairman Brett Taylor said in a tweet that the Twitter board is committed to closing the transaction on the price and terms agreed with Elon Musk. Legal action is being prepared to implement the merger agreement.
Elon Musk will pay a penalty of 1 billion dollars
It is being told that Elon Musk may have to pay a huge amount to cancel this deal. If the deal between Elon Musk and Twitter is canceled by either party, it has to pay a fine of one billion. In such a situation, if Elon Musk cancels this deal, then he will have to pay 1 billion dollars as penalty to Twitter.
The deal was done for 44 billion dollars
Let us tell you that Tesla CEO Elon Musk had offered to buy Twitter for $ 44 billion (about Rs 3,48,700 crore). After that there were many occasions when it was felt that she would stay on this deal or would be canceled. Musk shelved the deal, saying he would not pursue the deal until the social media company proved that its spambot accounts accounted for less than 5% of total users.