Less than three months after agreeing to buy the micro-messaging service, Musk wants out. Since he announced the deal, Musk has expressed buyer's remorse.
Attorneys representing Musk sent a letter to the chief legal officer of the company explaining why Musk did not plan to go ahead with the merger.
Attorneys for Musk claimed that the platform downplays the number of bot and fake accounts. Less than a month after the bid was accepted, Musk began questioning the company's number of fake and fraudulent accounts.
Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplifyTwitter's identification, collection, and disclosure of the most relevant information sought in Mr.
The Merger Agreement could be terminated due to inaccurate information provided by the SEC.
In May, Musk said that the deal was temporarily on hold due to the calculation of the number of fake accounts.
The company's shares plummeted as investors worried that the deal would fall apart. On the day that Musk said that the deal was on hold, the market cap of the company plummeted to $9 billion below Musk's purchase price. The collapse in tech stocks caused the broader market to tumble.
After the bell on Friday, the shares fell another 5% to $35.06. Musk agreed to pay $54.20, but they are now less than that.
Musk isn't going to be allowed to leave. The case will be pursued in court, according to the company's chairman.
Taylor said that the board is committed to closing the transaction on the price and terms agreed upon with Musk. The Delaware Court of Chancery is where we are confident we'll win.
As the company's value tanked, some analysts viewed Musk's public statements about the social networking site as a way to bail out.
On CNBC's "Squawk Box," Bernstein's Toni Sacconaghi said that he believed Musk was trying to negotiate a lower price for his company.
The market has fallen a lot. He might be using the guise of active users as a ruse.
Musk continued to draw attention to the problem of undercounting accounts, which he said was an obstacle to completing the acquisition.
He asked his audience of over 100 million followers his doubts about the accounting of accounts on the micro-messaging service. He said at the time that Parag Agrawal wouldn't show proof that only a small amount of accounts are fake.
At an event in June, Musk said that he was still waiting for a resolution on the issue of fake and fraudulent accounts on the micro-messaging service. The Washington Post reported earlier this week that Musk and his associates were unable to verify the authenticity of the data that was used to make the deal happen. It is a different tone than the one Musk was taking when he was trying to make a deal. The messaging platform has the potential to be the platform for free speech around the globe according to a letter he sent to Taylor in April. Musk said at the time that he had a lot of faith in the site. I will open it He probably realized it wasn't going to be fun to own a social networking site.
All Rights Reserved © 2024
