Elon Musk says he’s pulling out of his $44 billion Twitter deal

The saga took a new turn after Musk said on Friday that he wouldn't go ahead with the acquisition. The announcement could be a start to a long court battle if he is able to walk away.

In an SEC filing Friday, Musk said he was pulling out of the deal.

Musk's legal team wrote that he wasterminating the agreement due to false and misleading representations made by the company.

In May, Musk said that he had put the deal on hold so that his team could investigate the number of fake accounts on the micro-blogging site. Even after the company gave him with its internal metrics, Musk insisted that his team had not been given enough information to conduct an independent analysis.

Musk's team argued in the SEC filing that they had failed and refused to provide this information.

Musk wanted to know how many daily active users the platform has, how the company identifies and suspends bot accounts, and how the sampling process for detecting bot accounts is done.

Musk's initial $44 billion offer was based on him paying $54.20 per share, but the stock has plummeted since then due to doubts that Musk would go through with the deal. In afterhours trading on Friday, after Musk announced he would withdraw his acquisition offer, the company's shares fell to $34.61, a decline of 6 percent. The original acquisition price was almost 37% lower.

When the market reopens after the weekend, analysts think the stock will go even lower.

When the stock reopens on Monday, it is likely to be in the $25-$30 range, according to an analyst. He said that a court battle could cause the company's stock to go up even more.

If Musk ended the acquisition, he would have to pay a $1 billion break-up fee. With a Delaware court set to be the arbiter, Musk could be sued if he doesn't pay.

The company is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement.

He said that the board is committed to closing the deal on the price and terms agreed upon with Mr. Musk. The Delaware Court of Chancery is where we are confident we'll win.