After Elon Musk announced Friday that he’s abandoning his offer to buy Twitter for $44 billion, Twitter said it will sue in order to maintain the deal, The Associated Press reported.
Musk said the main reason why he is abandoning the deal is because Twitter won’t provide information about how main fake accounts are on the social media platform, The AP reported.
The reason why Musk wanted to buy Twitter was because he thought he could get rid of the spam bots. (RELATED: Where Is Elon Musk? Tesla Chief Goes Silent For Over A Week)
Elon Musk says he’s not buying Twitter for $44 billion because of all the bots & fake accounts. Twitter says it’s suing him to compel purchase. I’d bet on a lower purchase price being negotiated before all is done here.
— Clay Travis (@ClayTravis) July 8, 2022
“This is a disaster scenario for Twitter and its board,” Wedbush analyst Dan Ives wrote in a note to investors, The AP reported.
“From the beginning, this was always a head scratcher to go after Twitter at a $44 billion price tag for Musk and never made much sense to the Street, now it ends (for now) in a Twilight Zone ending with Twitter’s Board back against the wall and many on the Street scratching their head around what is next.”
As Twitter shares Friday fell 5% to $36.81—below Musk’s offer of $54.20 per share—Tesla shares rose 2.5% to $752.20, The AP reported.
Twitter’s general counsel sent an internal memo, obtained by The Verge, that says that staffers should “refrain from Tweeting, Slacking, or sharing any commentary about the merger agreement.”