Earlier this year, Tesla CEO Elon Musk made headlines when he announced that he would be interested in acquiring Twitter. Twitter initially resisted the deal, but eventually caved, but now it looks like the deal is no more as Musk has essentially terminated the deal.
According to a letter that Musk’s lawyers have sent to Twitter, they have confirmed that they are now backing out of the deal, citing “false and misleading” representations.
“Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect.”
For those unfamiliar, this is in reference to how Musk had previously claimed that Twitter is misleading investors and users about the number of fake accounts on its platform. According to Twitter, they had estimated that fake users to be under 5%, but Musk had stated back in May that the deal would be put on hold until the actual amount could be verified.
What’s interesting about this is because prior to this, Musk seemed to have no issues with the fact that there are plenty of bots on Twitter, and that it was a problem he had planned on tackling once he had acquired the company. Either way, it looks like the deal is now dead in the water and Twitter will no longer be acquired.