Months ago, Americans learned that business tycoon Elon Musk would be purchasing Twitter. Musk, in announcing his decision, stated he wanted to revolutionize and change the social media site, especially amid growing concerns about free speech.
Of course, Musk was met with pushback from left-wing Twitter employees and individuals who see no problems with reported levels of censorship on the platform.
However, Twitter accepted the offer to buy the company. The board of directors even advised shareholders to support the transfer to Musk.
However, weeks into arrangements, discrepancies over reports of bot accounts on the site began to emerge. On Friday, this came to a head when Musk announced that he would not be purchasing Twitter after all.
Musk on Pulling Out From the Deal
The business magnate claims that Twitter was not honest about the level of bots on its site. Both accounts, in a nutshell, mimic accounts with human operators. Only, when bots disseminate content, it’s generally spammy and even fraudulent at times.
Other common purposes of bots can involve boosting real users’ numbers of followers or post engagement levels.
Elon Musk backs out of the Twitter deal, saying the company has misled him on issue of spam bots. But Twitter vows to take Musk to court to enforce the deal https://t.co/dJ5NThAjbh pic.twitter.com/N62ozoj6cb
— Bloomberg TV (@BloombergTV) July 9, 2022
Twitter previously stated that under 5% of its accounts are bots. Yet, Musk and his team say this is untrue. In Musk’s Securities and Exchange Commission (SEC) paperwork detailing his removal from the deal, he also accuses Twitter of being misleading.
On these grounds, Musk is saying he no longer intends to purchase Twitter.
Twitter Not Backing Down
Despite the points that Musk brought up about bots on the site and Twitter’s contested reports of these bots, the social media site still wants the multi-billion-dollar purchase deal to go through.
Twitter board member Bret Taylor responded to news of Musk’s pull-out on Friday with no unclear terms on where the company stands.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
Taylor explained that Twitter will challenge Musk’s pull-out of the deal in court and has every expectation that the businessman will have to hold up his end of the original agreement.
The Twitter board member also made it clear the company has no intention of altering the terms or price that were originally agreed upon when Musk arranged the buy-out.
Multiple reports indicate the business magnate could face a $1 billion fine if he doesn’t go through with buying Twitter.