Deal Twitter and Elon Musk is canceled, what are the consequences? † Tech

Musk signed a takeover deal with Twitter two months ago. He then put 44 billion euros on the table, but is now withdrawing. Musk believes that Twitter withheld information about the number of fake accounts and is not worth the large amount at all. Twitter does not want to stop there and it is therefore going to court. Musk risks having to pay a termination fine of more than 1 billion euros, but there may also be damages of 16 to 44 billion euros.

“We will never know the real reason for dropping this deal. In essence, we are dealing with a businessman, the richest man in the world, who wants to protect his empire,” tech expert Kenneth Dée tells VTM Nieuws. “It is about a lot of money and he has determined that this deal is suddenly not that interesting for him anymore. He doesn’t want to lose face.”

Dée points out that Musk has already pushed the pause button after a few weeks of negotiations, because he felt that something was not quite right with the company. “He then asked for insight into all the tweets that are sent in a day and set up engineers there to let them find out how many fake accounts actually exist,” says Dée. “Based on that information, he has now decided that he no longer wants to buy Twitter.”

According to Dée, this case is not about the billions, but mainly about loss of face. “Twitter in particular is losing face here. If one of the most famous businessmen, after gaining insight into your company, says ‘I don’t fully trust this company’, try to restore your image as a company. Especially if the deal doesn’t go through.”

If Twitter were to lose the lawsuit, then things don’t look good for them, according to Dée.

Will there be a temporary blockade of Facebook and Instagram in the EU?

500 super-rich lose 1,346 billion euros in first half