Musk Declares Termination of Twitter Acquisition Agreement

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Elon Musk, CEO of Tesla and the world's richest person, announced on the 8th (local time) the termination of the $57 trillion Twitter acquisition deal.

According to AP News and others, CEO Musk stated that he would terminate the deal due to a material breach of the acquisition agreement. This comes just over two months after signing the acquisition contract.

The legal team said that Twitter refused to provide important information regarding fake and spam accounts, which are crucial to the company's business performance. Earlier, CEO Musk signed a contract at the end of April to acquire Twitter for $44 billion (57.2 trillion won). However, in mid-May, he suddenly suspended the deal and hinted at the possibility of cancellation, citing concerns over Twitter's fake account status.

At that time, the legal team claimed, "Since Twitter violated its obligations under the acquisition agreement, CEO Musk has all rights, including terminating the acquisition contract."

Twitter maintains that the proportion of fake accounts among all accounts is less than 5%, but CEO Musk has countered that the minimum fake account rate is at least 20%, four times Twitter's estimate, and insisted that this must be verified before the acquisition.

After news of the acquisition deal termination broke, Twitter's stock price fell 6% in after-hours trading. In the regular New York stock market session, Twitter's stock closed down 5.10% compared to the previous day due to concerns over layoffs and the potential collapse of Musk's acquisition.

This content was produced with the assistance of AI translation services.