Why Elon Musk Pulled Out of Twitter Purchase

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Elon Musk

Elon Musk

Elon Musk has recently decided to withdraw his purchase offer for the Twitter platform. His intent to terminate this offer to purchase was brought forward due to the failure on Twitter’s half to provide certain information that Musk required. With all of the hype surrounding this purchase and the announcement a few weeks ago, it now comes as quite a shock to hear that Musk will be pulling out of the deal and will no longer be going forth with the purchase.

They are however other forms of speculation for the reason behind masks decision to back out of the deal, some analysts are reporting that the shop decline in the share price of Twitter since the announcement of the agreement in April is most likely a considered factor that might be a reason for Musk deciding not to go through with the purchase any longer. This quick decision made by Elon Musk will not be taken lightly though, it is said that he might be forced to pay billions of dollars in legal fields in order to successfully remove himself from the deal and Twitter has announced that they board intends to pursue legal action against Musk in order to reach completion of the initial purchase deal.

Social media platforms and technology play a very large and important role in not only the personal lives of people but also their businesses – when it comes to providers of professional IT Support in London for example, you might not know it but the kinds of tools that they suggest their customers make use of are often influenced by certain business trends. Outsourced IT Support London Solutions are often set-up and structured in a way that makes technological sense and helps a business to take control of their technology while also using social media to grow their target audience and database. Twitter is a very important tool for many different companies across various industries and sectors and is considered at many points of a business’s marketing strategy.

If the Twitter platform does come into some sort of disrepute, this could jeopardise the plans of many businesses in the future. Billionaire Elon Musk has filed a letter in which he believes that Twitter is in fact “in material breach of multiple provisions” and that he was not provided with accurate information regarding the current state of fake accounts and spam that has plagued the Twitter platform for many years. The belief is that due to this failure to comply, he no longer feels as though this deal is something he wants to go through with and has made his concerns quite public.

In previous letters that have been filed by Elon Musk’s lawyers in June of 2022, it states that he was aware of the fake accounts and had requested this information. At the time it was in belief that no more than 5% of active Twitter accounts were currently fake or automated, however this report did not sit well with Musk and his team. It is no surprise that the Twitter board is not very happy with the announcement from Elon Musk, they have reported that they are in fact pursuing legal action against him and his legal team in order to bring this deal to completion.

Even though mask has decided to pull out of the steel, Twitter might be able to force the purchase to actually go through via the legal system. Termination of this agreement will have negative impacts on the shares and stakeholders in Twitter – with the recent drop in share prices since the announcement, Twitter shares could see a further drop with the deal not going through.

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