Twitter sues Elon Musk’s purchase resignation

On July 11, 2022By Garmin Philip

Musk doesn’t want to buy Twitter after all

Elon Musk rejects the Twitter purchase. Reason should be too many bots on the platform. The company has now filed a lawsuit against the billionaire.

News

According to Elon Musk, Twitter has a bot problem.

Update from July 11, 2022: Twitter is suing Musk’s withdrawal from the purchase

If Elon Musk has his way, the Twitter deal has burst. The Tesla owner announced in April that he wanted to buy the social media platform for around $44 billion ($54.20 per share). Since then, the value of Twitter’s shares has fallen sharply. Now he wants to withdraw from the purchase and declares the takeover to be dissolved. The reason for this is said to be a bot problem on the platform.

Musk’s lawyers claim that Twitter did not correctly report the number of spam accounts. The percentage of bot accounts should therefore be greater than the “less than 5 percent” mentioned by Twitter. The deal fell through because “Twitter is patently refusing to honor its obligations under the merger agreement, raising suspicions that the company is withholding the requested data for fear of what Musk’s own analysis of that data will uncover,” Musk’s legal team said.

Twitter disagrees with Musk’s statement. The company gave him access to internal data. Now they want to force Musk to take over in court, how Board Chairman Bret Taylor announced via tweet.

Because the takeover agreement between Musk and Twitter provides for a penalty of $1 billion if one party withdraws from the purchase. However, the contract also contains a clause that could force Musk into a takeover in court. A resignation is only possible if there are far-reaching changes for Twitter’s business. Experts doubt that a higher number of bot accounts represents such a case.

Whether Musk will be allowed to withdraw from the takeover and how high the contractual penalty will be in this case will only become apparent after months of negotiations.

Original article of April 26, 2022: Elon Musk takes over Twitter

After Elon Musk announced that he wanted to buy Twitter at a price of 54.20 US dollars per share, the Tesla CEO and the social media company have now come to an agreement. Musk is said to be loud on Twitter press release at a purchase price of approximately US$44 billion and own it as a privately held company.

According to Bret Taylor, Twitter’s independent CEO, the acquisition is in the interests of shareholders: “Twitter’s Board of Directors has conducted a thoughtful and comprehensive evaluation process of Elon’s proposal, with a deliberate focus on value, security and funding. The proposed transaction will yield a significant cash reward and we believe this is the best path forward for Twitter – is shareholders.”

Shareholders are to receive the proposed $54.20 per share, a premium of 38 percent over the April 1 share price. The purchase process should be completed before the end of this year.

Musk remains vague on his future plans for Twitter: “I want to make Twitter better than ever by improving the product with new features, open source algorithms to increase trust, defeat spam bots and authenticate everyone. Twitter has tremendous potential – I look forward to working with the company and the user community to unlock it.”

Musk originally announced in early April that he would primarily act as a passive investor with a stake of around 9 percent in the company. Musk had turned down Twitter CEO Parag Agrawal’s subsequent offer to join the platform’s board of directors just days later.