Elon Musk has filed a report with the SEC saying he has terminated his pursuit of Twitter.
Yesterday the Washington Post reported that Elon Musk had „stopped engaging in certain discussions around funding for the $44 billion deal” and that the deal was in serious jeopardy, so this news isn’t out of the blue.
Twitter shares were down 5.35% on the report today and closed at $34.84 — far below the $54.20 agreement. For more than a month, there have been signs that Musk has a bad case of buyer’s remorse.
What’s far less clear is that he will be able to walk away from the deal.
He accused Twitter of being „in material breach of multiple provisions” of the merger agreement.
„Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect (as that term is defined in the Merger Agreement)”