Elon Musk refused to buy Twitter: Elon Musk pulls out of $44 billion deal to buy Twitter. Tesla founder and billionaire Elon Musk refused to buy the social network Twitter. It is reported by CNBC.
The businessman sent a letter to the company’s chief lawyer informing him of the termination of the deal. He explained that the social network did not provide the information he was interested in.
Bloomberg.com: Has Elon Musk Refused to Buy Twitter
According to the billionaire’s lawyers, Twitter “failed or refused to respond to numerous requests” for data on spam accounts and fake accounts. The social network is going to sue.
The head of Tesla and SpaceX, Elon Musk, has abandoned a deal to buy Twitter due to the fact that the social network did not provide information about fake accounts and spam bots, Reuters reports, citing a statement by the billionaire’s lawyers.
The total amount of the deal was $44 billion. According to an earlier agreement, if the deal is canceled, Musk is obliged to pay Twitter a billion dollars.
Reasons why Elon Musk refused to buy Twitter:
In a letter released by the Securities and Exchange Commission, Skadden Arps attorney Mike Ringler said “Twitter failed to honor its contractual obligations.” Musk wanted to find out how true the claims that about five percent of monetized daily active users (mDAUs) are spam accounts.
All indications point to some of Twitter’s public disclosures regarding the mDAU being either false or materially misleading, he said, Ringler concluded.
Twitter did not agree to the break in the deal:
Twitter Chairman Bret Taylor said the company remains committed to completing the deal. The company plans to take legal action to enforce the agreement.
Twitter “failed or refused to respond to multiple requests” for spam and fake account data, Musk said. They accused Twitter of violating several provisions of the agreement with the head of Tesla and SpaceX.
“Twitter is committed to closing the deal at the price and terms agreed with Mr. Musk,” Taylor said. He also expressed confidence that the social network will win the lawsuit.
Following Musk’s announcement of a deal-breaker, Twitter shares fell about six percent.
Twitter shares fell 7% during trading:
Bret Taylor, chairman of the board of directors of Twitter, announced the intention of the social network to sue.
Under the terms, Musk must pay a $1 billion penalty if the deal does not go through.
Elon Musk refused to buy Twitter. Reuters writes about this.
According to the businessman’s lawyers, Twitter failed or refused to respond to numerous requests for information about fake or spam accounts on the platform, which is fundamental to the company’s business performance.
In response, Bret Taylor, who is Twitter’s chairman of the board, said the organization plans to sue “to secure a merger agreement” for a previously agreed amount.
Earlier Elon Musk said that the Starlink satellite communication system would not block Russian news agencies, despite requests from “certain states.”
What happened in the past?
On May 27, the owners of Twitter shares decided to sue Elon Musk and the company. They believe that the “chaotic” course of the deal to sell the social network to a billionaire turned into a fall in Twitter shares.
After Elon Musk refused to buy Twitter, a lawsuit was filed in California:
The class-action lawsuit was filed in California. Investors accuse Musk of violating state corporate laws and manipulating the stock market. Since the start of the deal, Twitter shares have fallen 12 percent and Tesla shares have fallen 28 percent. Investors claim the billionaire has benefited financially by postponing disclosure of plans to join the company’s board of directors.
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This post was last modified on July 11, 2022 8:00 pm