Billionaire Elon Musk announced on Friday that he is abandoning the purchase of social networking site Twitter.
Elon Musk, the chairman of Tesla and SpaceX, said on Twitter on Friday that he was terminating a deal with the board of directors to buy the social network because of “false and misleading” information about the company.
In a letter released by the U.S. Securities and Exchange Commission, his lawyers asserted that Twitter did not honor the commitments made in the agreement.
Twitter has repeatedly said in recent weeks that the number of fake accounts on its site is less than 5%. The multi-billionaire and his team believe the network is a lie, and that it affects the credibility of his business and therefore the value of the company.
For weeks, experts have debated whether Elon Musk wants to withdraw his offer or lower the price and renegotiate.
By completing his commitment to buy Twitter, the entrepreneur is exposing himself to substantial legal action. Both parties have pledged to pay severance payments of up to $1 billion under certain circumstances.
On April 25, despite Twitter’s attempts to push him away, he seems to have won his race. He struck a firm deal with the group’s board of directors to buy the social network for $54.20 per share, or a total of $44 billion.
Since then, Twitter’s title has lost more than a quarter of its value. Tesla’s stock also fell nearly 25% during that time.