US billionaire Elon Musk on Friday announced the cancellation of his $44 billion bid to buy Twitter, citing “violations” of several terms of the company’s contract, while the platform’s board of directors said it would will do Sue Musk to complete this deal.
“Twitter has failed or refused to respond to multiple requests for information about fake or unwanted accounts on the platform that is essential to the company’s business,” Musk’s lawyers said in a notice to regulators.
Musk has threatened to block the deal unless the company provides evidence that fake accounts make up less than 5 percent of users who see ads on Twitter.
Shares of Twitter fell 6% after the deal was announced.
The cancellation announcement comes after Musk made the deal last April, before suspending it until the platform provided him with information on the fake accounts, sparking a debate over whether Musk would go through with the deal or cancel it. ends
Musk’s attorney, Mike Ringler, wrote in a letter dated Friday that nearly two months after Musk requested information about fake accounts on the platform, Twitter “failed or refused to provide this information. It was justified, and at times the company claimed which it has complied with. With these requests while providing incomplete or useless information to Mr. Musk.”
In turn, Brett Taylor, chairman of the board of directors of “Twitter”, said: “The board of directors intends to follow the legal procedures to implement the merger agreement.”
“Twitter’s board is committed to closing the deal at the price and terms agreed upon with Mr. Musk,” he wrote.
The Associated Press reported that Twitter’s board could have lobbied for the $1 billion penalty clause Musk had agreed to if the contract was terminated, but the board appears determined to insist on completing the deal, which was approved by the board. It was approved and CEO Praj Agrawal said: “He insists that he wants to complete it.”
In a letter to investors on Friday, analyst Dan Ives said it was a “disastrous scenario for Twitter and its board” and predicted a lengthy court battle to restore the deal or face a billion-dollar “breakup price.” In the contract of Musk and company
He continued: “From the beginning, Prince was confused that Musk was looking to buy Twitter for $44 billion, a price that never made sense to Wall Street, and now that the price has dropped, the deal has reached an uncertain stage.” “Board options that have their backs against the wall and many are on the market now.” They scratch their heads, what will happen next?
Shares of Twitter fell late Thursday after The Washington Post reported that Musk’s $44 billion deal to buy the social media platform was “in jeopardy.”
Musk had previously expressed skepticism about the purchase and even hinted at the possibility of taking it back, arguing that the platform contained too many fake accounts.
However, according to the newspaper, Musk was unable to determine the percentage of fake Twitter accounts, despite giving him access to the company’s internal data.
While Musk made comments that cast doubt on his commitment to the buyout deal, the newspaper report cited an unnamed source as saying his team was preparing for a “turnaround.”
Twitter shares, which are currently trading at less than what Musk offered, fell about 4% on news of their price after the buyout.
In a note to investors, Wedbush analyst Dan Ives said: “It is clear that Musk’s acquisition of Twitter will close in the coming months and that Musk will decide whether to close the deal (at a lower price) or get out Clearly, this caused chaos in the company.
Source: Lebanon Debate
