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Elon Musk would find it difficult to back out of the Twitter deal

Elon Musk is having cold feet about the Twitter deal—or he’s just trolling.On May 13, Musk tweeted that his deal to buy Twitter is “temporarily on hold” until he can get more assurance that the social platform’s user base is at least 95% real people, versus fake or spam accounts. It’s a concern Musk has…

Elon Musk may be having cold feet about the Twitter agreement–or he’s simply trolling.

On May 13, Musk tweeted that his deal to buy Twitter is “temporarily on hold” until he can get more assurance that the social platform’s user base is at least 95% real people, versus fake or spam accounts. It’s a concern Musk has raised repeatedly in the past, and Twitter’s stock price fell 10% immediately after his tweet.

But after agreeing to buy Twitter for $44 billion in April, Musk might also be keen to gain leverage and renegotiate at a more favorable price, given the severe downtown in the stock market. He is also the CEO and largest shareholder at Tesla, which lost $126 billion in value just on April 26, the day after the Twitter deal closed. Although Musk and Twitter have reached an agreement on an acquisition, it is unlikely that the deal will close before a few months. Twitter holds the advantage over Elon Musk for the foreseeable future. The company could make Musk’s life very difficult if he chooses to leave.

Twitter has the advantage over Elon Musk

Musk may use his concern about fake accounts to renegotiate his Twitter acquisition, but it’s unlikely to give him the ability to pull out of the agreement without a penalty. “Contractually speaking, the user count would not be a basis for backing out–even if he pays the break fee–unless, possibly, the count is having a fairly severe effect on Twitter’s fi

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