In recent times, continued doubtsTwitter's fake account problemAfter the situation became more serious than expected, Elon Musk officially announced on Twitter that he would terminate the acquisition.
According to the letter sent by Elon Musk's legal advisory team to Twitter, they believe that Twitter violated multiple agreement requirements in this transaction, including false and misleading statements about the proportion of fake accounts, and emphasized that Twitter did not honestly disclose the actual proportion of fake accounts.
Prior to this, Elon Musk always believed that the proportion of fake accounts on Twitter was not just below 5%, and that the problem of fake accounts would seriously affect the operation of Twitter services, which would be detrimental to Elon Musk's hope of using Twitter to create a better online speaking platform, and would also be unfavorable for Twitter advertisers.
The announcement of the termination of the Twitter acquisition will result in Elon Musk having to pay $10 billion in liquidated damages and potentially face a lawsuit from Twitter's board of directors. Twitter has also urged employees to refrain from sharing or discussing the matter on platforms like Twitter and Slack, and has stated that it will be releasing limited information publicly.
After Elon Musk announced that he would terminate the acquisition of Twitter, Tesla's stock price immediately rose by 14.51% and even continued to rise, while Twitter's stock price fell by 9%.
The market believes that the problem of fake Twitter accounts may only be the superficial reason why Elon Musk gave up the acquisition. The actual factor may be that Twitter's stock price subsequently plummeted, which made Elon Musk's team feel that the acquisition price of US$440 billion seemed to be a disadvantage, so they may try to negotiate at a lower acquisition price.
