Twitter Deal: Tesla boss, Musk gives condition to complete $44 billion acquisition

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Months after billionaire and Tesla Chief Executive Officer, Elon Musk threatened to pull out of the $44 billion Twitter deal, he has now given conditions to return to the deal table.

Musk had earlier threatened to back out from the deal due to some disagreement with the firm’s board.

He requested that Twitter’s management should submit the method of sampling that showed how they arrived at the conclusion that its spam account is less than five percent of its over 300 million users.

While replying to a query by the United States Securities and Exchange Commission (SEC) in July, Musk mentioned that “material breach” and “false and misleading” statements on the part of Twitter had caused him to back out from the deal.

Musk’s refusal to continue with the deal cost the company some huge financial loss during the period.

Twitter’s second quarter (Q2) 2022 financial statements reported a $1.18 billion turnover which revealed less revenue compared to the $1.19 billion grossed in Q2 2021.

The company also recorded a $270 million net loss, against the $66 million profit recorded during the corresponding period of Q2 2021.

Twitter had gone ahead to blame Musk, ad industry problems and the global economic crises as reasons for the poor revenue report while going ahead to sue Musk with the aim of compelling him to complete the acquisition deal.

On Saturday, August 6, 2022, Musk held a Twitter poll asking his followers if “Less than 5% of Twitter daily users are fake/spam”.

822,766 votes were recorded, with 64.9% of voters voting “No”, while 35.1% voted “Yes”.

Musk responded by saying, “Twitter has spoken.”, while also challenging Twitter CEO, Parag Agrawal, to a public debate on the fake accounts.

Musk agreed to go ahead with the deal if Agrawal will be able to prove that the less than 5% bot accounts are true.