Musk waives buying Twitter

Billionaire Elon Musk waives plans to buy Twitter. Thats what his lawyers wrote to US stock exchange watchdog SEC.

According to Musks legal team, Twitter has failed to comply with contractual obligations and made false statements. โ€œSometimes Twitter ignored Musks requests, sometimes they were denied on seemingly unlawful grounds, and sometimes Twitter claimed to comply with the requests while the company provided incomplete or unusable information.โ€

Ever since he announced in mid-April that he wanted to take over the social medium for some $44 billion, Musk has been arguing with Twitter about the actual number of daily users of the platform. According to Musk, the company was not honest about spam bots, which automatically often spread questionable content. Twitter insisted that it involved a maximum of 5 percent of users.

Legal Fight Expected

By May, Musk had already paused the takeover attempt to give Twitter time to provide more information about it, but although the company recently said it deleted 1 million spam accounts daily, Musk remained critical. Earlier in the day, sources already reported to US media that the deal was in jeopardy.

Shortly after announcing Musks decision, Twitter responded that it wants to continue the agreement, instead of accepting a $1 billion lump sum. The message seems to be the prelude to a long legal fight between the two parties.

Twitter shares are about 5 percent lower. The value of just under $37 is well below the 54.20 offered by Musk for the companys shares.