Recently there has been so much debate upon(Elon Must Twitter Deal Might Be Cancelled) on web as Tesla President Elon Musk, earlier twetted “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users”
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn— Elon Musk (@elonmusk) May 13, 2022
Looking into his plans to purchase social media site Twitter on April 4 in the amount of $44 billion but he then put the deal in limbo in the midst of waiting for more details on the spammers on Twitter. Although Musk stated that the deal could be renegotiated and could be completed at a lower cost and the world’s most wealthy person has now decided to cancel the transaction.
The Musk team’s, through a statement filed with the USA’s Securities and Exchange Commission, states “material breach of multiple provisions” of the agreement as well as “false and misleading representations” from Twitter as the reason for the termination of the agreement. Twitter has been also being accused of not adhering to its obligations in the contract agreement.
The document states that Musk repeatedly demanded details about bots that spam users on Twitter in order to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,” however, the company did not provide this data.
Twitter occasionally refused to comply with Musk’s requests for the data however, sometimes it refused these requests due to “reasons that appear to be unjustified.” Twitter also claimed that it was able to meet Musk’s requests at times by providing insufficient or non-useful information. You can go through the whole note here.
In reply, Twitter Chairman Mr. Bret Taylor stated that the board of Twitter is determined to complete the deal at the terms and price reached by Musk and the Musk family, and that it is planning to take legal action in order to enforce the merger deal.
Musk is required to pay $1 billion break-up cost to Twitter as part of the deal should he fail to make the deal. Therefore, he’ll have argue convincingly in order to justify the pull-out and avoid paying the break-up charge to the social media company.
The Twitter acquisition was a rollercoaster since its inception, and it remains to be seen whether Twitter decides to pursue an legal proceeding to make Musk to complete the acquisition with the agreed price and terms, or if the parties resolve the dispute by settling the matter.