Elon Musk says no deal, but Twitter says not so fast.
The world’s richest man sent a letter to the company’s board saying he would terminate his bid to buy the social-media platform.
That could cost Musk $1 billion in the form of a breakup agreement, though Twitter chairman Bret Taylor tweeted Friday that the company plans to hold Musk to the $44 billion deal.
“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,” chairman Bret Taylor said. “We are confident we will prevail in the Delaware Court of Chancery.”
Musk had offered the $44 billion proposal in April to take control of the popular platform he’s criticized for the way it moderates content. Right-wing social media users who have been most impacted by Twitter’s efforts to make the platform more civil and less freewheeling celebrated the announcement.
Twitter stock fell nearly 5% Friday, to $36.81 per share. Musk’s offer would have paid $54.20 per share.
Podcasting giant Joe Rogan excitedly drew comparisons between Musk and superheroes like Iron Man when the deal was announced.
“He thinks free speech is important and not just important — vital for a functioning democracy,” Rogan said. “And I agree with him.”
There was rampant speculation that former President Donald Trump would start tweeting again after being banished from the platform after his followers stormed the United States Capitol on Jan. 6, 2021 to stop the certification of the presidential election he lost. Trump instead launched his own platform, Truth Social, as an alternative to Twitter. Trump had nearly 89 million followers when his account was suspended.
Musk has 100 million followers on Twitter. He had in recent weeks suggested the company may be underreporting bots and fake accounts. Musk critics have speculated he was never interested in consummating the Twitter deal. Events in his personal life have recently grabbed headlines including the revelation he’d quietly fathered twins last year with an employee.
Buzz that Musk might launch his some sort of answer to Twitter began in late March when he asked his followers what should be done to make social media more inclusive.
“Is a new platform needed?” Musk tweeted.
The 51-year-old entrepreneur had not addressed the drama by the end of the business day Friday. His last tweet was posted Thursday evening. In it, he expressed excitement over unspecific product developments at his “awesome” electric car company Tesla.
With News Wire Services
