Elon Musk Wants To Pull Out Of The $44 Billion Twitter Acquisition
Billionaire Elon Musk has shared with Twitter that the company does not want to reveal more information about its user base, and therefore he is considering the possibility of pulling out of the $44 billion deal.
Tesla and SpaceX CEO Elon Musk said Twitter is in serious breach of the merger agreement, so he has the right to terminate the $44 billion company acquisition agreement. Elon Musk’s legal team explains that Twitter has refused to provide him with important information regarding spam and fake accounts on its platform.
In a letter to Twitter Inc. on June 6, also filed with the US Securities and Exchange Commission (SEC), Elon Musk’s legal team wrote:
“Twitter has, in fact, refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company’s platform.”
In addition, the letter also notes that Twitter has been asked to provide data under the merger agreement by Elon Musk. His legal team asserts that Twitter’s above resource is necessary to form a complete and accurate understanding of the active user base on the platform because it is a core value of its business model.
As a result, the Tesla CEO suspects that Twitter’s refusal to comply with its merger agreement’s obligations means that the company is knowingly withholding “negative” data. Furthermore, the SpaceX boss finds Twitter actively fighting and obstructing his personal right to information. The letter states:
“Twitter’s effort to characterize it otherwise is merely an attempt to obfuscate and confuse the issue. Mr. Musk has made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis. The data he has requested is necessary to do so.”
Last month, the Tesla CEO announced that his acquisition deal on Twitter has now been shelved over the “spam, bots” issue. Under the merger agreement, though, Musk will have to pay Twitter a $1 billion fee if he terminates a $44 billion cash deal for the company. However, this will change if Twitter violates the agreement.
In the opposite direction, according to Twitter’s authorization statement in April 2022, Elon Musk hastily made his “best and last” offer of $44 billion to the company without making it any appraisal.
In addition, the Tesla CEO does not request to enter into a confidentiality agreement or search Twitter for non-public information related to the company. So Twitter used this excuse to deny Musk’s request for data.
In fact, the richest billionaire on the planet has been complaining about spam on Twitter for a long time. He called this “the most annoying problem” on Twitter and promised to solve it thoroughly if he successfully took over the platform, including expanding and integrating the utility with Dogecoin into Twitter.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Author
News
Elon Musk Wants To Pull Out Of The $44 Billion Twitter Acquisition
Billionaire Elon Musk has shared with Twitter that the company does not want to reveal more information about its user base, and therefore he is considering the possibility of pulling out of the $44 billion deal.
Tesla and SpaceX CEO Elon Musk said Twitter is in serious breach of the merger agreement, so he has the right to terminate the $44 billion company acquisition agreement. Elon Musk’s legal team explains that Twitter has refused to provide him with important information regarding spam and fake accounts on its platform.
In a letter to Twitter Inc. on June 6, also filed with the US Securities and Exchange Commission (SEC), Elon Musk’s legal team wrote:
“Twitter has, in fact, refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company’s platform.”
In addition, the letter also notes that Twitter has been asked to provide data under the merger agreement by Elon Musk. His legal team asserts that Twitter’s above resource is necessary to form a complete and accurate understanding of the active user base on the platform because it is a core value of its business model.
As a result, the Tesla CEO suspects that Twitter’s refusal to comply with its merger agreement’s obligations means that the company is knowingly withholding “negative” data. Furthermore, the SpaceX boss finds Twitter actively fighting and obstructing his personal right to information. The letter states:
“Twitter’s effort to characterize it otherwise is merely an attempt to obfuscate and confuse the issue. Mr. Musk has made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis. The data he has requested is necessary to do so.”
Last month, the Tesla CEO announced that his acquisition deal on Twitter has now been shelved over the “spam, bots” issue. Under the merger agreement, though, Musk will have to pay Twitter a $1 billion fee if he terminates a $44 billion cash deal for the company. However, this will change if Twitter violates the agreement.
In the opposite direction, according to Twitter’s authorization statement in April 2022, Elon Musk hastily made his “best and last” offer of $44 billion to the company without making it any appraisal.
In addition, the Tesla CEO does not request to enter into a confidentiality agreement or search Twitter for non-public information related to the company. So Twitter used this excuse to deny Musk’s request for data.
In fact, the richest billionaire on the planet has been complaining about spam on Twitter for a long time. He called this “the most annoying problem” on Twitter and promised to solve it thoroughly if he successfully took over the platform, including expanding and integrating the utility with Dogecoin into Twitter.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Other Posts
Related Posts
