A report that tech billionaire Elon Musk was about to collapse the agreed takeover has put pressure on Twitter on the stock market.
According to a Washington Post report, the ongoing conflict between Musk and Twitter management is seriously jeopardizing Musk’s intended takeover of the service. The dispute revolves around the number of spam and fake user accounts on the platform, and the takeover is worth $44 billion. A consequence of the article: The share of the short message service fell by more than seven percent after hours on Thursday. Most recently, the price was still almost four percent in the red.
Will Elon Musk get out of the Twitter takeover?
An anonymous source is quoted in the report as saying that Musk’s staff consider the information from Twitter to be unverifiable. His team stopped engaging in talks about financing the deal. The conflict over fake accounts is not new. Musk has already threatened to scrap the deal. Some observers see the bickering as Musk’s excuse to get out of the expensive takeover. He and Twitter have agreed to a $1 billion penalty if either party backs out of the deal. But if Twitter insists on enforcement, it could still be legally difficult for Musk.
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