Elon Musk no longer wants to buy Twitter and is therefore being sued
At the beginning of April, Elon Musk announced that he would buy the social media platform Twitter, literally $44 billion. But just like Activision Blizzard and Microsoft, the billion-dollar deal is now threatening to burst. As early as May, just a month after the announcement, Musk had concerns because he thought the platform was through spam accounts would be pulled down.
In the meantime he has Tesla boss finally got cold feet and officially announced that he wanted to call off the deal. The reason for this is the fake and spam accounts: After Twitter gave an estimate that less than 5% of all user accounts are not managed by real people, they wanted to Musk check these numbers for yourself.
Why doesn’t Elon Musk want to buy Twitter anymore?
Like the team of the Tesla boss now in one official statement announced have Twitter the data required for this was not released: “For almost two months, Mr. Musk has been trying to get the data and information needed to make an independent assessment of the prevalence of fake or spam accounts on Twitter. […] Twitter failed or refused to provide this information.”
Musk and his legal team insist on the importance of this data and that the deal be too insecure without them: “This information is fundamental to Twitter’s business and financial performance and is necessary to… […] To enable Mr. Musk’s financial planning and financing of the transaction and to implement the planned transformation for the business.”
Twitter wants to go through with the deal and will take Musk to court in an emergency
On Twitter, Musk’s opinion seems to be in the frame a submission in the Securities and Exchange Commission happened to be unimpressed. Of the Twitter chairman Bret Taylor announcedthat the deal on the agreements made will be enforced, also in court:
“Twitter’s board of directors is committed to completing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will Delaware Court of Chancery will prevail.”
As The Verge reports, Twitter is behind the scenes instructing its employees to investigate the matter not to comment publicly. In a memo from Twitter’s legal counsel Sean Edgett is it[called:“As this is an ongoing legal process, you should refrain from sharing any comments regarding the merger agreement, whether on Twitter, Slack, or anywhere else. We will continue to share information with you as soon as we can, but please be aware we are very limited in that regard at the moment.”
As is often the case with such large and, above all, public deals, a transaction that appears to be consensual will probably turn into a mud fight court. It remains to be seen which of the two parties will prevail and whether Elon Musk will carry out his planned measures if he should be forced to buy.
Sources: Bret Taylor on Twitter / The Verge / Musk’s filing with the Securities and Exchange Commission / Letter from Musk’s team to Twitter
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