Musk’s plans to buy Twitter have plagued policy makers around the world.
Joe Skipper | Reuters
Within 3 months after agreeing to purchase twitter For $ 44 billion Elon Musk He says he wants to go out. Not surprisingly, Musk has expressed remorse for the buyer immediately after announcing the transaction.
The lawyer representing musk is letter I’ll explain why to Twitter’s Chief Legal Officer, Vijaya Gadde, on Friday. Tesla The CEO and the wealthiest people in the world have no plans to proceed with the merger agreement.
Reiterating Musk’s debate, lawyers argued that Twitter downplayed the number of bots and spam accounts on the platform. Just a few weeks from Twitter Accepted With a one-sided bid in late April, Musk began to question the company’s fake and spam account aggregation.
“In short, Twitter is despite his repetitive detailed account aimed at simplifying Twitter’s identification, collection, and disclosure of the most relevant information sought in Mr. Musk’s first request. He didn’t provide the information Mr. Musk requested for almost two months, “the lawyer wrote on Twitter.
They added that the inaccurate information Twitter provided in the SEC’s disclosure “may form additional grounds for terminating the merger agreement.”
Back in May, Mask said in Tweet“Twitter transactions are temporarily pending and details are pending to support the calculation that spam / fake accounts are actually less than 5% of users.”
Meanwhile, the company’s stock has plummeted over investor concerns that transactions will collapse.The day before Mask says the transaction is on hold, Twitter’s market capitalization nosedived It is $ 9 billion below the purchase price of about $ 44 billion for masks. The fall of the wider market, driven by the collapse of tech stocks, did not help.
Twitter’s share price fell another 5% outside Friday’s business hours to $ 35.04 after falling more than 5% in regular trading. They are currently 35% below the $ 54.20 price that Mask has agreed to pay.
Twitter isn’t ready to get the mask away. The company’s chairman, Bret Taylor, said on Friday that Twitter would file a proceeding in court.
“The Twitter Board has promised to close the transaction at the price and terms agreed with Musk and will take legal action to enforce the merger agreement,” Taylor said in a tweet. .. “We are confident that we will win the case in the Delaware Peace Court.”
Some analysts saw Mask’s official statement about Twitter spam accounts as a convenient way to remedy the company’s depreciation.
Bernstein’s Toni Sacconaghi CNBC’s “Squawk Box” He believed that Mask was instigating “negotiation tactics” in the hope that Twitter would eventually lower its selling price.
“The market has fallen sharply,” Sakonagi said at the time. “He’s probably negotiating under the guise of a true active user.”
Musk continued to pay attention to what he said was a major issue in underestimating spam accounts, indicating that he saw this issue as an obstacle to completing the acquisition.
In mid-May, he once again raised questions about accounting for Twitter’s spam accounts to an audience of over 100 million Twitter followers. He claimed that Twitter CEO Parag Agrawal at the time “refused to show evidence” that less than 5% of accounts were fake or spam accounts.
“Yesterday, the CEO of Twitter publicly refused to show evidence of less than 5%,” Musk tweeted. “This deal cannot move forward until he moves forward.”
In June, Musk again publicly commented on the prevalence of fake and spam accounts on Twitter, saying: and At the Bloomberg event, “We are still waiting for the issue to be resolved. It’s a very important issue.”
This is very different from what Mask was taking when he was actively trading earlier this year. In april, he letter Taylor expressed his belief that businesses “need to be transformed as private citizens” and that messaging platforms could “become a platform for free speech around the world.”
“Twitter can be extraordinary,” Musk said at the time. “Unlock.”