Billionaire Elon Musk wants to close $ 44 billion to buy twitter,according to letter It was sent by a lawyer on Friday to the company’s Chief Legal Officer.
However, Twitter Chairman Bret Taylor said the company is still committed to closing the deal at the agreed price and will take legal action to implement the agreement. rice field.
“We are confident that we will win the case in the Delaware Peace Court,” Taylor wrote.
Twitter’s share fell by about 6% after Friday’s business hours.
In a letter disclosed in the Securities and Exchange Commission’s filings, Skadden Arps lawyer Mike Ringler accused Twitter of not complying with its contractual obligations.
Ringler claimed that Twitter did not provide Mask with the relevant business information he requested, as Ringler said a contract was required. Musk previously said he would like to evaluate the claim that about 5% of Twitter’s monetizable daily active users (mDAU) are spam accounts.
“Twitter failed or refused to provide this information,” Ringler claimed. “Twitter may ignore Mr. Musk’s request, reject it for seemingly unreasonable reasons, or insist that he comply with it while providing him with incomplete or unusable information.”
Ringler also accused Twitter of violating the merger agreement because it contained “substantially inaccurate language.” This accusation is based on Mask’s own preliminary review of spam accounts on Twitter’s platform. Twitter states that it is not possible to calculate spam accounts from public information alone, and a team of experts are reviewing to reach the 5% figure.
“This analysis is ongoing, but all signs suggest that some of Twitter’s public disclosures about its mDAU are false or virtually misunderstanding,” Ringer argued.
“Despite public speculation on this point, Musk has the right to review Twitter’s data and information simply because he chose not to ask for this data and information before concluding the merger agreement. I didn’t give up, “Linger added. “In fact, he accurately negotiated access and information rights within the merger agreement, allowing him to see data and information that is important to Twitter’s business before funding and completing the transaction.”
He also alleged that Twitter violated its consensual obligation to obtain Mask’s consent before changing its normal business policy, pointing out a recent layoff at the company.
Musk is now officially leaving the deal, but the story may not be over yet.
Under the terms of the agreement, Musk agreed to pay $ 1 billion if he withdrew. But as Twitter’s chairman of the board has shown to do so, the company will sue him for leaving him if they disagree that his reason should remove him from the contract. Allows you to try to maintain his original deal.
Twitter has a reason to try to keep the mask in its original condition. Shares have fallen sharply since the board announced that it had accepted his offer to buy the company for $ 54.20 per share. On the day of the announcement, the shares closed at $ 51.70 per share. At the closing market price on Friday, Twitter’s share price was $ 36.81.
According to the letter, Musk also seems to be paying attention to stock prices, “said the company, whose decline in business outlook and financial outlook gives Musk a separate and clear basis for terminating the merger agreement. We are considering whether it constitutes a serious adverse effect of. “.”
