The new date is Jul 8, 2022.
According to a Securities and Exchange Commission filing, Musk "terminated" his deal to buy the platform, but the head of the board said the company plans to take up a legal challenge to force the agreement to go through.
The 2020 Satellite Conference will be held in Washington. The photo was taken by Win McNamee.
The company is committed to closing the deal and will pursue legal action to enforce the merger agreement according to the chairman of the board.
If a party withdraws from the deal, they will have to pay a $1 billion fine, according to the agreement.
According to Musk's attorney, Mike Ringler, the deal is being called off because Musk doesn't like how many fake accounts are on the platform.
According to Ringler, the company is in violation of its agreement with Musk by not providing enough information.
After reports surfaced that the deal was in serious jeopardy, the stock price plunged more than 5% on Friday to close at $36.81, before dropping another 6 percent in after-hours trading.
Musk did not reply immediately.
Ringer said in the letter that sometimes it has ignored Mr. Musk's requests and sometimes it has rejected them for reasons that seem to be unjust.
Musk said on May 13 that he was putting the deal on hold because he was concerned about fake and fraudulent accounts on the platform. Musk was skeptical of the data that was presented to back up the claim that less than 5% of accounts were fake. According to the Washington Post, the billionaire was expected to make a major shift in his approach to the deal after his team determined that the claim on fake and spam accounts was not true. Musk was fed up with the moderation policies that hurt public discourse. He promised as owner that he would allow all speech permissible by law on the platform.
Friday's news is predicted to be a disaster for Twitter, with analysts predicting a long legal battle for the company to either force the deal through or get Musk to pay the $1 billion Termination Penalty. According to the analysts, the stock could go as low as $25 on Monday.
The price was $53.50. That is how much the deal valued the company at. Over the past few months, the stock has plummeted due to concerns over the deal and a broader tech selloff. The market cap of the company was around $28 billion.
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