Elon Musk terminates deal to buy Twitter, board plans to sue.

What to know about the Tesla CEO who wanted to buy Twitter

When did Musk agree to buy Twitter?

Musk’s $44 billion deal was confirmed in late April after Musk spent nearly three months buying up Twitter shares to increase his stake in the company. At the time, the billionaire said he wanted to “make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.” 

Why did Musk back out of the Twitter deal? 

In a word, bots.  While Twitter has said bots make up just 5% of its monetizable daily active users, the letter says that Twitter appears to be “dramatically understating” the proportion of spam and false accounts. Musk has previously contended that the count is 20% or higher.

TWITTER BOTS:What are they and how could they mess up Elon Musk’s $44 billion Twitter deal?

How is the Twitter Board responding?

The board plans to sue Musk, according to Bret Taylor, chair of Twitter’s board. 

The Twitter Board is committed to closing the transaction on the price and terms agreed “upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,” the tweet read. 

In its latest quarterly report, Twitter warned that its financial condition “may suffer” if the merger does not close. Tumbling stock prices, low investor confidence, stockholder lawsuits, and business disruptions were just a few of the possibilities the company laid out.

How much will it cost Elon Musk?

According to a document filed with the SEC on April 25, Musk would be on the hook for $1 billion if he terminates the deal. 

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