Tuesday, 12 July 2022

Tesla CEO Elon Musk terminates deal to buy Twitter for $44 billion

12 July 2022
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Tesla CEO Elon Musk terminates deal to buy Twitter for $44 billion

Twitter has hired top law firm to charge legal action against Tesla and SpaceX CEO Elon Musk on his decision to terminate the $44 billion takeover deal. Musk decided to suspend the deal due to multiple breaches of the purchase agreement. The two parties are likely set for a protracted court battle, according to lawyers. Musk could also be faced with paying a $1 billion breakup fee for walking away.

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Twitter shares sank in premarket trade after Elon Musk said he is trying to terminate his $44 billion takeovers of the company. Shares of the social media platform closed down 11%. Tesla, where Musk is CEO, fell about 6.5%. After the market closed and Musk’s letter was published, Twitter’s stock continued to decline while Tesla climbed higher.

Important takeaways for all competitive exams:

  • Twitter CEO: Parag Agrawal;
  • Twitter formed: 21 March 2006;
  • Headquarters of Twitter: San Francisco, California, United States.

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