Elon Musk will not be purchasing Twitter after all. According to a new filing with the Securities and Exchange Commission (SEC), Musk has terminated his agreement to purchase the social media giant.
On Friday, Twitter was formally notified that the $44 billion deal, which would have taken the social media platform private among other changes, was being terminated. This comes after months of speculation that Musk had changed his mind about the deal after repeatedly complaining about Twitter’s refusal to disclose all of its data on spam bots.
Musk’s Twitter buyout was reported to be in “serious jeopardy” earlier this week as negotiations dragged on. It has now been completely cancelled.
Twitter is suing Musk in response to the cancellation of the deal. Twitter chairman Bret Taylor wrote in a tweet shortly after the announcement, “The Twitter Board of Directors is committed to closing the transaction at the agreed-upon price and terms with Mr Musk and intends to take legal action to enforce the merger agreement.” “We are confident that we will be successful in the Delaware Court of Chancery.”
Musk first proposed buying Twitter in April, prompting the company’s board of directors to devise a “poison pill” strategy to thwart the deal. Later, Twitter changed its mind and agreed to the $44 billion buyouts, which Musk described as his “best and final” offer.
Musk said that by adding Twitter to his portfolio, which also includes SpaceX and Tesla, he would be rolling back moderation policies and unbanning controversial figures such as former President Donald Trump. He also promised to address Twitter’s long-standing issue with spam bots and fake accounts.
Following the agreement, Musk continued to spar with Twitter, claiming breach of contract for the company’s refusal to reveal the true number of fake accounts on the platform.
For its part, Twitter has moved steadily forward with the deal, with the board unequivocally recommending that shareholders vote in favour of the deal. It also began laying off workers in preparation for the merger’s completion.
Elon Musk has yet to respond to the deal’s cancellation.
The deal’s consequences are likely to be significant, though they are currently unknown. Twitter will remain public in some form or another.