Executive President Tesla, Elon Muskannounced this Friday (8) that it is terminating its formal purchase agreement twitter. According to the businessman, the social network did not provide clear and sufficient information about the amount of spam and fake accounts on the platform.

In a statement, Musk claims that Twitter was “materially violating various provisions“contracts of sale and”apparently made false and misleading representations“. It also states that the number of spam and fake accounts is “wildly morethan the 5% reported by Twitter, according to a preliminary analysis by its advisory group.

After the deal was announced, Elo Musk repeatedly threatened to back out. The last case is related to the number of fake social media accounts. As part of the deal, he must pay additional $1 billion in revenue. It is worth recalling that the original agreement was for 44 billion US dollars.

After announcing the closure of the business, Twitter shares fell 6%.

Long and controversial process

On April 14, Tesla and SpaceX owner Elon Musk offered $44 billion for the overall purchase of Twitter. Ten days earlier, he became the largest single shareholder, having bought a 9.2% stake in the social network.

A few weeks later, Twitter’s board decided to reconsider Musk’s proposal. The company itself said it intends to conduct a “thorough, comprehensive and deliberate review” of the proposal. However, the possibility of further talks surfaced when the company, according to The Journal, met with Musk’s party for a discussion. And at the end of April, the board accepted the offer, and Elon Musk had the opportunity to become the new owner of the social network.

Thus began the purchase evaluation process by Musk’s team. At first, there were rumors that he would turn himself in to save Tesla, as the company’s shares fell after the announcement of the purchase of the social network.

In mid-May, he announced that he was suspending his Twitter purchase to check for fake accounts. In the buyer’s opinion, the rationale would be “pending data confirming calculations that fake/spam accounts actually represent less than 5% of users.In early June, he even threatened if Twitter didn’t release user data for evaluation.

Now the deal is closed without closing. This isn’t the first time Musk has canceled a deal. In 2018, he promised to start a biscuit company to compete with American philanthropist Warren Buffett’s already established See’s Candies, but backed out soon after.

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Source: Reuters, Financial Times.