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Twitter sues Elon Musk after he made a $44 billion takeover deal | Science & Technology News



Elon Musk has pulled out of a deal to take over Twitter for $44 billion (£36.5 billion).

In a statement provided to the United States Securities and Exchange Commission, representing Mr Musk Twitter said Twitter had violated the terms of an agreement and “appears to have made false and misleading statements”.

They said Twitter also did not provide the data and information requested by Musk to enable him to “independently assess the prevalence of fake or spam accounts” on the social media platform.

“Sometimes Twitter has ignored Musk’s requests, sometimes it denied them for reasons that seem implausible, and sometimes it claims to comply while providing Mr. Musk with incomplete information or unusable,” the statement continued.

As a result of Musk’s decision, Twitter shares fell 7% in extended trading, much lower $54.20 that he offered to pay the company back in April.

The terms of the settlement require Mr Musk to pay a $1bn (£830m) parting fee if he doesn’t close the deal.

However, it appears that Twitter’s board of directors has no plans to accept the payment and will instead take legal action.

Twitter confidently pursues legal action

Twitter’s President Bret Taylor tweeted that the company is “committed to closing the transaction on the price and terms agreed with Mr. Musk and plans to pursue legal action to enforce the merger agreement”.

He added: “We are confident we will prevail in Delaware Premier Court.

Being able to unravel the deal is just the latest twist in the story between the world’s richest man and one of the most influential social media sites.

Much of the drama took place on Twitter, with Mr Musk – who has more than 95 million followers – lamenting that the company hasn’t reached its full potential as a platform for free speech.

Musk has suspended the deal

Tesla’s CEO had previously threatened to suspend the deal unless the company proved spam and bot accounts had less than 5% of users.

Last month, Twitter granted Mr Musk access to “firehose”, which is the location where the raw data of hundreds of millions of daily tweets is stored.

Read more:
Twitter to give Musk daily raw tweet data ‘amid concerns about fake accounts’
Musk says he would reverse Trump’s Twitter ban if he was in charge of the social media company

Mr Musk’s flirtation with buying Twitter appeared to have begun in late March when Twitter said he had reached out to members of its board – including co-founder Jack Dorsey – and told them that he is buying shares in the company and is interested in joining the board, using Twitter privately, or starting a competitor.

He later revealed, in a regulatory filing, that he had become the company’s largest shareholder after acquiring a 9% stake worth about $3 billion.

At first, Twitter offered Mr. Musk a seat on its board.

But six days later, Twitter’s chief executive tweeted to say that Mr. Musk would not be on the board eventually, and that his attempt to buy the company quickly came together after that.

‘This is a disaster scenario for Twitter’

Inside Twitter, Mr Musk’s offer was met with confusion and low morale, especially after he publicly criticized one of the social media platform’s top lawyers in relation to the lawsuits. content moderation decisions.

After the deal was formed, the company went on to freeze hiring, halted discretionary spending, and fired two top managers.

Musk’s decision could lead to a protracted legal battle between the billionaire and the 16-year-old San Francisco-based company.

Daniel Ives, an analyst at Wedbush, says that’s bad news for Twitter.

“This is a catastrophic scenario for Twitter and its board as the company will now go up against Musk in a protracted duel to reclaim the settlement and/or minimal breakup fees,” he said. is 1 billion dollars”.



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