The Tesla Billionaire withdrew from the deal after claiming Twitter had provided insufficient information about the number of fake accounts on the site.
Twitter has announced that they plan to take legal action to enforce the deal.
Their share price was $32.64 (£27.44) at the close of trading on Monday, well below the $54.20 (£45.56) share price agreed between Mr. Musk and Twitter in April when he first announced his plans to buy it.
ConsultMyApp founder and CEO Mike Rhodes said of the dispute: “From day one, it was easy to question Musk’s rationale for buying Twitter.
“The potential issues were particularly apparent in April with regard to identifying bot/fake account numbers, as this threatened to seriously undermine Twitter’s valuation.
It appears Musk’s suspicions were confirmed as Twitter has been reluctant to release the calculation behind its own estimates, and Musk has used this as his excuse to end the deal.
Musk and his lawyers have always been clear about the need for data to assess the number of fake accounts.
“Yet Twitter has failed or refused to provide this information, opting instead for incomplete or useless information.
“For example, last month Twitter provided Musk with his ‘firehouse’ details in an effort to counter claims that the entrepreneur was being denied the information he was legally entitled to as part of the deal.
“Twitter’s firehouse provides a real-time stream of the millions of public tweets posted to the platform daily, as well as information about the accounts behind them.
READ MORE: Nadine Dorries believes Boris will return – ‘He’s coming back!’
“By sharing this data, Twitter has made an unprecedented move, raising a number of privacy concerns and competitive risks, given Musk’s recent tweets about violating NDAs.
“Still, the data hasn’t raised the issue of automated accounts, and it’s unlikely Musk could ever deduce anything from the data that the platform itself couldn’t.
“Ultimately, it appears to have been another case where Twitter offered information to Mr. Musk in a rather convoluted form, rather than providing real evidence of Twitter’s business and financial performance.
“Not working with Musk seems rather ironic and misguided, as one of the main reasons the entrepreneur gave for taking over Twitter was his belief that he could add business value by removing spam bots.”
NOT MISSING:
Alison Steadman comforted by Paul McCartney after John Lennon declined [SHOWBIZ]
How the Russian forces are pitted against the British army, the RAF and the navy [ANALYSIS]
Rafe Spall spills children’s reaction to Timothy Spall in Harry Potter [CELEBS]
Rhodes also revealed that the social media company, founded by Jack Dorsey, Noah Glass, Biz Stone and Evan Williams in 2006, will be worse off as a result of their conflict with Mr. Musk.
He continued: “As for the biggest loser, it’s clearly Twitter. Musk is expected to lose $1 billion, pennies in the grand scheme of things, but Twitter has lost valuable employees, suffered executive disruption and has grown suspicions about the real DAU/MAU Daily Active Users/Monthly Active Users ratio of real people.
“Since the DAU/MAU numbers are directly correlated with ad revenue and are seen as an overall health indicator for any app, investor backlash could send huge shockwaves if subsequently misrepresented by the company.
“Musk got what he wanted — a little bit of attention and to annoy the Silicon Valley elite — but Twitter has exposed some very painful truths that could have a very significant long-term impact on the company.”