Elon Musk, the head of Tesla and SpaceX, said on Twitter on Friday, July 8, that he is terminating the agreement reached with the board of directors due to information about the purchase of the social network. “false and misleading” on business.
In a letter published by the US stock market police, its lawyers assert that Twitter has not respected its obligations under the contract by not providing all the information requested about the number of fake accounts and spam. Twitter has repeatedly said in recent weeks that the number of fake accounts on its platform is less than 5%. The multi-billionaire and his team believe the network is lying and that this is affecting the viability of his business and therefore the value of the company.
For weeks, pundits debated whether Elon Musk wanted to withdraw his offer or renegotiate a lower price. By completing his commitment to buy Twitter, the businessman is exposed to significant legal processes. Both parties have committed to pay up to $1 billion in severance payments under certain circumstances. Twitter’s president immediately claimed that the company was going to take legal action “Perform the agreement”. repayment “Twitter’s board is committed to completing the transaction at a price and on terms agreed upon with Mr. Musk.”tweeted Brett Taylor, stating that they were “confident” in their ability to win in court.
“This is a scary scenario for Twitter and its board, as the company will now have to face Musk in a protracted legal battle to save the deal and/or recoup at least $1 billion.”, analyst Dan Ives responded. In the letter, Elon Musk’s attorneys also discuss Twitter’s recent layoffs and layoffs. They have clear “List as many reasons as possible to avoid paying” fine, analyst Carolina Milanesi commented for AFP.
On April 25, Elon Musk appeared to have won his bet, despite Twitter’s initial attempts to remove him. After gradually and discreetly increasing the group’s capital, he reached a final agreement with the group’s CA to buy the social network at a price of $54.20 per share, or a total of $44 billion. Since then, the Twitter name has lost more than a quarter of its value. Tesla shares also fell nearly 25% during that time.
But even if the social network emerges weakened from its many adventures in recent months, “The worst thing would be if Twitter were to force the purchase.”, says Carolina Milanesi. “They would end up with an owner who doesn’t want the business and who is full of resentment.”.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.