Elon Musk ends $44 billion deal to buy Twitter

Elon Musk is ending his $44 billion deal to buy Twitter, according to a new Securities and Exchange Commission filing.

“Mr. Musk requested data and information necessary to ‘make an independent assessment of the prevalence of fake accounts or spam on the Twitter platform'” and did not receive it, the filing said.

The fake accounts have become a sticking point in Musk’s rollercoaster bid to acquire the social media platform, with the Tesla CEO previously threatening to end his deal over concerns over the prevalence of bot and spam accounts.

SpaceX owner and Tesla CEO Elon Musk speaks during a conversation with game designer Todd Howard (not pictured) at the E3 gaming convention in Los Angeles, June 13, 2019.

Mike Blake/Reuters, FILE

In Friday’s filing, Musk’s attorney claimed that Twitter “was in material breach of several provisions of this agreement” and appeared to have made “false and misleading statements” when entering into the agreement.

Twitter Chairman Bret Taylor responded on Friday that the board is still committed to the terms of the agreement.

“Twitter’s board of directors has agreed to complete the transaction at the price and terms agreed to with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” he said. declared on Twitter. “We are confident that we will prevail in the Delaware Court of Chancery.”

Musk struck a deal to buy the platform for $54.20 per share on April 25, after quickly becoming Twitter’s largest shareholder with a 9.2% stake.

On May 13, he said his plan to buy Twitter was “temporarily suspended,” citing concerns about spam accounts. He briefly clarified that he remained “committed to the acquisition,” despite Twitter’s stock price closing down more than 9% on the same day.

Fake accounts represent less than 5% of users, Twitter said in a public filing in May, while noting that its estimate “may not accurately represent the actual number of these accounts, and the actual number of fake accounts or spam could be higher than we estimated.”

Musk, a prolific Twitter user with some 100 million followers, has yet to publicly comment on his plans to end his takeover.

If he backs out of the deal, Musk could be liable for $1 billion in severance pay.

Twitter stock is down about 6% in after-hours trading on Friday.

ABC News’ Joshua Hoyos contributed to this report.

This is a developing story. Please check for updates.

ABC News

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