Tesla CEO Elon Musk Is Hinting He’ll Drop $44 Billion twitter deal On the issue of fake accounts, but it was all just speculation till yesterday. According to multiple media reports, the billionaire has threatened in a letter to walk away from the acquisition deal if the social media network fails to provide data on spam and fake accounts. Musk said in a letter sent through his attorney that Twitter was in “clear material breach” of its obligations and that Musk reserves all rights to terminate the merger agreement.
Musk’s latest warning to Twitter has put a big question mark on the mega deal. While the Tesla CEO has explicitly mentioned his stance several times in the letter as well as in the microblogging site, here’s what we know.
What does Elon Musk’s letter say?
In a letter filed with regulators on Monday, Elon Musk said he was entitled to conduct his own survey of spam accounts, as he believes more than 5 percent of bot accounts Twitter As reported by the microblogging site.
“As the potential owner of Twitter, Mr. Musk is expressly entitled to the requested data to enable him to convert the business of Twitter into his ownership and to facilitate its transaction financing. Musk’s attorney, Mike Ringler To do both, it must have a complete and accurate understanding of the core of Twitter’s business model — its active user base.
“Based on Twitter’s behavior so far, and in particular the company’s latest correspondence, Mr. Musk believes the company is actively protesting and undermining their information rights,” the letter said. has been.” “This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights as a result, including his right not to terminate the transaction and his right to terminate the merger agreement.”
what twitter said so far
Twitter responded to Musk’s letter on Monday, saying it would share information with the Tesla CEO. “Twitter has and will continue to share information with Mr. Musk to ensure the transaction is completed in accordance with the terms of the merger agreement,” read the statement.
“We believe that this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms,” it added. As indicated by its current CEO Parag Agarwal in a series of tweets earlier, after Musk announced a halt to the deal, “While I expect the deal to close, we need to be open to all scenarios. Need to be prepared and always do what is right for Twitter. I am accountable to lead and run Twitter, and our job is to build a stronger Twitter every day,” he had said in a tweet on May 14.
Fake accounts the only problem for Elon?
The dispute between Elon Musk and Twitter has reinforced doubts about the $44 billion acquisition, which was announced in April of this year. However, analysts say Musk is doing so to renegotiate the price of the deal, which will result in huge out-of-pocket costs for the Tesla CEO. There is also the issue of interest payments against $13 billion in debt, which seems to be becoming more problematic over time. Meanwhile, Elon Musk will face a $1 billion lawsuit if he walks away from the deal, according to its provisions.
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