San Francisco: Elon Musk has abandoned the decision to buy Twitter. Elon Musk has abandoned his decision to buy Twitter for $4.4 billion amid a three-month long court case. Twitter has announced that it will go to court against the decision.
In early April, Elon Musk announced that he was the sole investor with a 9 percent stake in Twitter and would control the board of directors. He then announced that he was going to buy the company. A situation has arisen where a listed company becomes a private company. Musk’s assertion that freedom of speech and expression will be fully accommodated is highly controversial. In this case, he announced that he would buy the company for 4,300 crore dollars. While the company’s share price traded at $70 last year, his announcement to buy at a price of $54.20 per share was considered a very low amount. But in the last 3 months, the company’s share price has fallen to $37.
As a result, Twitter investors accused Elon Musk of swindling and causing the stock to fall. Meanwhile, Tesla’s stock prices also suffered a sharp decline. This left Musk unable to raise enough funds to buy Twitter.
Meanwhile, Musk’s lawyer told the court that the Twitter management did not provide the details regarding the fake account that they asked for. He also mentioned in court that Twitter management fired 2 key executives without Musk’s knowledge in violation of the contract.
Twitter CEO Fred Taylor stated that the decision to sell company shares was based on Elon Musk’s asking price with the approval of the board of directors. Musk is currently suing the court for breach of contract.