Twitterverse is on the chopping block as Musk considers backing out of takeover deal

Sharee B.

Elon Musk, made headline-breaking news last month when he announced his bid to buy social media platform Twitter last month. However, after agreeing to the purchase for nearly $44 billion dollars, it appears that he has some issues with going forward as planned.

According to Musk, he is hesitant on closing out the deal as a result of confusion between the fake account tallies and the number of spambots on the platform. Ironically, he used the same platform to tweet about his concerns just days before Twitter CEO issued their own statement.

"This deal cannot move forward"- Twitter, Elon Musk, Tesla & SpaceX CEO

Investors, Twitter board members, and various bankers have been skeptical about the reasoning behind his tweets, and are speculating that it may be a ploy to bring down the share pricing before the purchase is fully made.

In a rare move, in order to protect the deal as is, Twitter has filed a preliminary proxy statement acknowledging that it plans to secure the funds at a rate of $54.20 per share, which equates to $44 billion dollars. They also urge shareholders to vote in favor of approving the acquisition.

"Twitter is committed to completing the transaction on the agreed price and terms as promptly as practicable".- Twitter board of directors

Meanwhile, the share prices have fallen to a low of $36 dollars since the tweet was made, which represents a decline of nearly 50% and a potential loss of tens of billions if Musk decides to change the terms for a lower company valuation based on current values.

For now, everyone is keeping watch as the stock market tumbles, Musk continues to tweet and Tesla's own shares take a tumble.

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