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Report: Elon Musk May Cancel Twitter Deal, May Face Fine Of 7600 Crore

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Elon Musk is preparing to buy Twitter for $44 billion. However, Elon Musk can cancel this deal. A new report has come regarding this. Several reasons have been given for this, due to which the Elon Musk-Twitter Deal can be withdrawn.

According to Reuters, Musk did this even four years ago. He announced the opening of a candy company to compete with See’s Candies. But, later, he withdrew from it. In this way, he can also accompany Twitter.

Report: Elon Musk May Cancel Twitter Deal

However, if he backs out of this deal, he can be fined $1 billion. Because there has been an agreement between the company and them regarding this, the party who cancels the contract will have to pay $1 billion in fines.

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The biggest reason for being told to cancel this deal is that after his stake in Twitter surfaced, his company, Tesla’s stock, is falling continuously. He will give some money in the Twitter deal by selling Tesla’s shares. But, due to the low share price, they may face problems here.

There is also a significant angle of China here. Tesla produces half of its vehicles in China, and the company gets a lot of revenue there. But, Twitter’s business is closed in China. Musk, who wants a free-speech platform, may have trouble.

Another reason is being told that the company may face problems in the coming times in Europe. In the Financial Times, European Union Commissioner Thierry Breton said that it could be banned if the company does not keep an eye on Harmful Content.

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To avoid all these troubles, Musk can back out from this deal. There is another big reason for this. Twitter’s stock is currently trading at 11% below its offer price. He is also constantly criticising many actions of the company. Due to this, the chances of cancellation of this deal are also increasing, and this will not happen for the first time.

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OM Prakash
OM Prakash
OM Prakash is Our Author at Spot News 18. He Loves to Write Meaningful Contents for Our Audience. He Is very Passionated about his Work.

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