Elon Musk Terminates $44 Billion Twitter Deal, , Shares Drop in Premarket Trading.
CNBC reports that on July 8, Musk's attorney told Twitter's board that the SpaceX and Tesla CEO wants to cancel the deal to buy the social media platform.
During premarket trading on July 11, Twitter shares were down 5% indicating about a $1.4 billion loss in market value from the closing price on July 8.
CNBC reports that Musk maintains Twitter isn't being honest about how many bots and fake accounts exist on the platform.
Twitter claims to have supplied Musk with accurate and honest information to confirm that spam accounts only make up about 5% of users.
Bret Taylor, Twitter's board chair, said legal action will be taken in the Delaware Court of Chancery.
On July 11, Musk took to Twitter to post a meme making fun of the whole ordeal.
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As of July 8, Twitter shares were down 32% from Musk's agreed deal price.
Many skeptics say that the bot issue isn't really why Musk wants out of the deal, but rather he simply doesn't want to pay the $54.20 per share he'd agreed to.
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CNBC reports that following a likely protracted court battle, Musk could be fined $1 billion for walking away from the deal.
