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Elon Musk may not actually buy Twitter after all

The Washington Post reports that the Tesla billionaire could be backing away from the $44 billion deal.

July 07, 2022
Elon Musk may not actually buy Twitter after all Elon Musk. Photo by Dimitrios Kambouris/Getty Images for The Met Museum/Vogue.  

Elon Musk could be in the process of pulling out of his $44 billion deal to purchase Twitter, according to a report from the Washington Post. The social media platform accepted Musk's $44 billion bid in April.

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Musk's concerns over Twitter's spam accounts – something he has posted about frequently – is reportedly at the center of his newfound shakiness. According to the Post, Musk's team has doubts over the veracity of the data on fake user accounts Twitter gave to them. As a result, "certain discussions around funding for the $44 billion deal" have stalled.

However, there has been speculation about the credibility of Musk's offer since its announcement. Since Musk's bid, tech stocks have taken a dive with Tesla losing 30% of its value in six months – since Musk used Tesla stock in part to finance the $44 billion bid, it would mean a considerable loss if the deal was finalized.

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The consequences Musk would face for tanking the deal are unclear, but likely severe. The agreement between Musk and Tesla states that Musk must pay a $1 billion penalty if he chooses to step away, however, some legal experts believe that Twitter could force Musk to purchase the company.

The FADER has reached out to Twitter for more information.

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Elon Musk may not actually buy Twitter after all