Musk refuses to buy Twitter and accuses it of false declarations
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(Pocket-lint) – Elon Musk doesn’t want to buy Twitter, according to a new report.
According to the Washington Post, the Tesla CEO is officially withdrawing from the $44 billion deal to buy Twitter. In a document filed earlier this week with the Securities and Exchange Commission, Mr. Musk said he was terminating the agreement because Twitter is in “material breach” after making “false and misleading” statements during the negotiations.
“For nearly two months, Mr. Musk sought to obtain the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,’ the legal team said. “Twitter either failed or refused to provide this information. Remember that weeks after signing an agreement with Twitter, Musk claimed that Twitter had provided misleading statistics on the number of spambots on its platform. Today, the chairman of the board of directors of Twitter, Bret Taylorsaid his company would “take legal action to enforce the merger agreement.”
It’s unclear if Musk can legally walk away from his deal due to the presence of spam on Twitter – a point that he could have considered before concluding an agreement. Twitter also seems to be very transparent on this issue. In June, Twitter even gave Musk the ability to analyze tweets, and recently announced that it was blocking more than a million spam accounts a day.
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Nevertheless, Mr. Musk believes that Twitter has not honored his agreement – and to top it off, Twitter has recently laid off two senior executives and instituted a hiring freeze.
However, Mr. Musk must prove that Twitter breached its agreement, because it cannot simply withdraw the signed agreement whenever it sees fit. Twitter will likely want to keep the deal because it is offering shareholders $54.20 per share, up from $36.81 at the close today. (Twitter and Musk will have to argue their case in front of a judge, who will ultimately decide whether there was a breach of the agreement. Pocket-lint will keep you posted on the latest ruling.
Twitter is still confident in the continuation of the operation. In an internal meeting, as Bloomberg reports, a senior Twitter executive told employees that the operation was proceeding normally.
Written by Maggie Tillman.