Despite the announcement of billionaire Ilan Mask announcing that he will stop buying $ 44 billion worth of Twitter, the company’s board is still waiting for this purchase.
Musk announced the suspension of the deal until the percentage of fake accounts on Twitter is determined, according to a report published by the Wall Street Journal, the company says in its reports that 5% of active users are estimated.
The paper reports that the withdrawal of either party from the deal, especially given the signing of the merger agreement, which includes specific details about the actions that each party will take to ensure the completion of the agreed agreement, will not be an easy process. Was.
The agreement also includes the legal rights that each of them has to prevent the transaction from being terminated.
The report states that Musk’s eagerness to negotiate the Twitter deal quickly commits him to certain components that allow Twitter to sue him for pursuing the deal, in a clause known as “special action.” It becomes.
The two sides agreed to pay $ 1 billion in fees if either of them did not make a deal for the specific reasons known as the “cancellation fees” outlined in the three scenarios.
Mask could drop the deal and pay $ 1 billion in three specific scenarios: if regulators try to block the deal, if he fails to raise the necessary funds, or if he can prove that Twitter has reached an agreement since the deal. it has been changed.
The report notes that Mask may be referring to the fact that the number of fake Twitter accounts was inaccurate at the time of signing the contract, or that Twitter has tried to distort this information in its reports, which may lead to related discussions. By agreement.
For its part, the Twitter board felt that the deal with Mask remained valid, saying, “We intend to close the deal and implement the merger agreement.”
The report suggests that Twitter could resort to the “special performance” clause to force the mask to continue the contract or provide fair compensation.
The paper noted that speculation about the deal is premature, as it is still possible to complete the contract and execute it next summer, or if the mask wants to pull out of the deal, the two sides may negotiate an agreement. Bargain or lower the price.
According to a previous AFP report, Twitter recently announced the resignation of two of its top executives and the suspension of all unnecessary appointments amid the purchase of masks from the group.
According to the New York Times, in a presentation to investors, Musk claimed that he could increase the company’s revenue by 5 times by 2028, increase subscription revenue dramatically, and increase the number of active users from 217 million at the end of 2021 to 931 million. Reach in 2028.
Source: Lebanon Debate
