Tesla CEO Elon Musk Officially Terminates $44 Billion Twitter Deal — Twitter Threatens Lawsuit

Tesla CEO Elon Musk has formally informed Twitter that he is terminating his $44 billion bid to buy the social media platform. “Twitter is in material breach of multiple provisions” of the agreement, Musk’s lawyer explained.

Musk Ending Deal With Twitter Citing ‘Material Breach of Multiple Provisions’

Tesla and Spacex CEO Elon Musk’s lawyer sent a letter to Twitter Inc. Friday regarding Musk’s offer to buy the social media platform. The letter, filed with the U.S. Securities and Exchange Commission (SEK), states:

Mr. Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement.

The letter claims that Twitter “made false and misleading representations” and Musk relied on them when he signed the merger agreement between Twitter and his companies: X Holdings I Inc. and X Holdings II Inc.

The lawyer explained that Twitter has not complied with its contractual obligations to provide necessary data to Musk.

For nearly two months, Musk has sought the data and information necessary to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,” the lawyer described, elaborating:

Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.

The letter acknowledges that Twitter has provided some information. Imidlertid, “that information has come with strings attached, use limitations or other artificial formatting features, which has rendered some of the information minimally useful to Mr. Musk and his advisors,” it notes.

Se også  ‘Dr. Doom’ Nouriel Roubini to Launch Tokenized Dollar Replacement — With Payment and ESG Features

In early June, Musk’s lawyer informed Twitter of the material breach and warned that Musk could terminate the deal. “Any cure period afforded to Twitter under the merger agreement has now lapsed,” the lawyer noted.

desuden, Musk’s lawyer alleged that Twitter made “materially inaccurate representations,” particularly regarding the social media company’s claim that “fewer than 5%” of its mDAU are false or spam accounts. Twitter defines “monetizable daily active usage or users (mDAU) as Twitter users who logged in and accessed Twitter on any given day through Twitter.com or Twitter applications that are able to show ads.”

Based on Musk’s own preliminary analysis:

All indications suggest that several of Twitter’s public disclosures regarding its mDAUs are either false or materially misleading … The proportion of false and spam accounts included in the reported mDAU count is wildly higher than 5%.

Ud over, “Twitter’s disclosure that it ceases to count fake or spam users in its mDAU when it determines that those users are fake appears to be false,” the lawyer said.

The letter further notes that Twitter deviated from its obligation to “preserve substantially intact the material components of its current business organization.” Since the deal with Musk was signed, the social media company fired key, high-ranking employees and announced on July 7 that it was laying off a third of its talent acquisition team. i øvrigt, three executives have resigned.

Noting that Twitter did not receive consent for these changes, Musk’s lawyer alleged that the company’s actions further constitute a material breach of the merger agreement with the Tesla CEO.

Se også  Kevin O'Leary forudsiger billioner af dollars vil strømme ind i krypto - siger, at Bitcoin-minedrift vil 'redde verden'

The letter concludes:

For all of these reasons, Mr. Musk hereby exercises X Holdings I, Inc.’s right to terminate the merger agreement and abandon the transaction contemplated thereby.

Musk and Twitter originally agreed on a termination fee of $1 billion when the agreement was signed. Imidlertid, the material breach accusation and any subsequent lawsuits could complicate the fee.

Bret Taylor, a Twitter board member, tweeted Friday in response to Musk terminating the merger deal:

The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement.

He added: “We are confident we will prevail in the Delaware Court of Chancery.”

Tags i denne historie
Elon Musk, elon musk abandons twitter, elon musk buys twitter, elon musk ends twitter deal, elon musk terminates twitter, elon musk twitter, material breach, Twitter, twitter breach of agreement, twitter merger deal, twitter sues musk

What do you think about Elon Musk ending the merger agreement with Twitter? Fortæl os det i kommentarfeltet nedenfor.

Kevin Helms

Studerende i østrigsk økonomi, Kevin fandt Bitcoin ind 2011 og har været evangelist lige siden. Hans interesser ligger i Bitcoin-sikkerhed, open source systemer, netværkseffekter og krydsfeltet mellem økonomi og kryptografi.




Billedkreditter: Shutterstock, Pixabay, Wiki Commons, rafapress / Shutterstock.com

Ansvarsfraskrivelse: Denne artikel er kun til informationsformål. Det er ikke et direkte tilbud eller opfordring til et tilbud om at købe eller sælge, eller en anbefaling eller godkendelse af produkter, tjenester, eller virksomheder. Bitcoin-Tidings.com giver ikke investeringer, skat, gyldige, eller regnskabsrådgivning. Hverken virksomheden eller forfatteren er ansvarlig, direkte eller indirekte, for enhver skade eller tab forårsaget eller påstået at være forårsaget af eller i forbindelse med brugen af ​​eller tilliden til noget indhold, varer eller tjenesteydelser nævnt i denne artikel.

Se også  Chinese State-Run Media Warns About Bitcoin’s Price Falling to Zero as Regulators Issue Fresh Crypto Warning

Læs ansvarsfraskrivelse