Tesla chief executive officer Elon Musk said on Friday he was terminating his $US44 billion ($64b) deal for Twitter, citing material breach of multiple provisions of the agreement
The announcement brings to an end a will-he-won’t-he saga after the world’s richest person clinched a deal for Twitter in April but then put the buyout on hold until the social media company proved that spam bots accounted for fewer than 5 per cent of its total users.Twitter could have pushed for a $US1 billion breakup fee that Musk agreed to pay under these circumstances.
Musk also said the information is fundamental to Twitter’s business and financial performance, and is needed to finish the merger. On Friday, shares of Twitter fell 5 per cent to $US36.81, well below the $US54.20 that Musk had offered to pay. Shares of Tesla, meanwhile, climbed 2.5 per cent to $US752.29 .
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