Elon Musk wants to terminate 44 billion Twitter deal, back out of the agreement is the most recent development.
Elon Musk wants to terminate 44 billion Twitter deal
July 8 – Elon Musk, CEO of Tesla and the wealthiest man in the world, said on Friday that Elon Musk is canceling a $44-billion deal to acquire Twitter as the social media company violated several provisions of the merger agreement. Billionaire Elon Musk is ending his deal to buy Twitter after saying Twitter failed to disclose a number of spammy and fake accounts on the platform. Elon Musk informed Twitter Friday that he is terminating his $44B deal to buy the platform, according to a Securities and Exchange Commission filing, but the Twitter chief executive said the company plans to file a legal challenge to keep the deal going. Elon Musks’ lawyers informed the Securities and Exchange Commission that Elon Musks Tesla is moving to terminate its acquisition deal with Twitter, and they have accused Twitter of being in material breach of several provisions of the merger agreement.
Since announcing Elon Musk’s acquisition in April, the tweet-happy CEO has accused the social media company of bloatware accounts to bloat their userbase. Saying is yet another turn in a “will-he-will-not-he” saga, as Elon Musk sealed a deal to purchase Twitter (TWTR.N) back in April, but then delayed the buyout until the social media company proved that spam bots make up less than 5 percent of its total users. One of the main reasons Elon Musk gave for being interested in taking Twitter private was that he believed that he could increase Twitter’s value by getting rid of its spambots – the very issue that he is now citing as the reason to kill the deal.
In late March, Twitter said that Elon Musk reached out to members of its board of directors — including co-founder Jack Dorsey — to tell them that he was buying shares of the company and was interested in joining Twitter’s board, taking Twitter private, or starting a rival. Elon Musk has been agitating about his ideas for Twitter, including asking Twitter to follow the free-speech principles rigorously and floating the idea of charging companies to be on the platform. Wedbush analysts Daniel Ives and John Katsingris called Friday’s news a catastrophic scenario for Twitter, foreseeing a lengthy legal fight by Twitter either to get the deal done or for Elon Musk to pay the $1 billion termination fee.
What Happens as the battle goes to court?
Given that Twitter has made it apparent that it would take legal action to enforce the terms of the agreement, Musk and the social media platform may be in for a protracted court struggle.
The Twitter Board is dedicated to completing the deal at the price and conditions negotiated with Mr. Musk, and it intends to take legal action to enforce the merger agreement. According to Twitter’s chairman Bret Taylor, we are optimistic that we will win in the Delaware Court of Chancery. A $1 billion breakup fee is also included in the original merger deal.
What is Next for Elon Musk?
After declaring he wanted out of that company’s transaction, Elon Musk spent the weekend in Idaho, attending the Sun Valley conference about NextVee. He spoke onstage, largely off the record, but one source in the room told CNN Chief Media Correspondent Brian Stelter that Musk had tripled down on his decision to try and get out of the deal, and claimed the whole thing was bots. At this early stage, it is not clear what would happen to Twitter’s current board or leadership team if a deal is consummated, but Elon Musk has made it clear that he believes Twitter has been poorly managed. Last week, Elon Musk, the richest person in the world, announced he was offering to buy Twitter for $54.20 per share. Buy Twitter for $54.20 per share.