Tesla CEO Musk, who added that he was still willing to buy Twitter, decided to stop working when he agreed to buy Twitter on April 25, in an effort to get the San Francisco-based company to accept his 'best and last gift'.

Elon Musk wrote on Twitter that his $ 44-billion deal with Twitter Inc was 'suspended' on Friday while he waited for details on the number of fraudulent accounts, posting multiple shares on social media.

'The Twitter deal has been suspended pending data supporting the fact that spam / fraudulent accounts represent less than 5% of users,' Musk told his 92 million Twitter followers.

Musk wrote on Twitter a Reuters story from ten days ago quoting fake account numbers. Twitter said the figures were estimates and that the actual figure could be higher. The average number of spam accounts on the microblogging site has remained below 5% since then

Elon Musk, decided to buy twitter with the primary motive to remove spam(fake) account from the platform.

Elon Musk wrote on Twitter that his $ 44-billion deal with Twitter Inc was 'suspended' on Friday while he waited for details on the number of fraudulent accounts, posting multiple shares on social media.

Since then, technology stocks have slipped into investor anxiety over rising inflation and possible recession.

The average number of spam accounts on the microblogging site has remained firmly below 5% since 2013, according to regulatory documents from Twitter, prompting some analysts to question why Musk is proposing now.

Twitter shares fell 16% by $ 38.06 in pre-market trading in New York, below the share price of $ 54.20. Shares of Tesla Inc increased by about 5%.

Musk has a contractual obligation to pay Twitter a $ 1 billion split if he does not terminate the agreement, and the contractual language of the agreement appears to cover any damages Twitter may claim from Musk at that level.

But the contract also contains a clause of 'special performance' which the judge can quote to force Musk to complete the contract.

In fact, recipients who lose a certain level of performance are almost never forced to complete the acquisition and often negotiate a financial agreement with the intended recipients.

There is plenty of precedent for a potential price renegotiation following a market downturn. Several companies repriced agreed acquisitions when the COVID-19 pandemic broke out in 2020 and delivered a global economic shock.

In one instance, French retailer LVMH threatened to walk away from a deal with Tiffany & Co. The U.S. jewelry retailer agreed to lower the price by $425 million to $15.8 billion.

Acquirers seeking a get-out sometimes turn to 'material adverse effect' clauses in their merger agreement, arguing the target company has been significantly damaged.

It will be interesting to see what finally comes out of this deal in the near future.