Elon Musk tries to bail on Twitter purchase
Tesla and SpaceX owner Elon Musk no longer wants to buy Twitter, the social media platform that for over a decade has been a major forum for gaming discourse, memes, and apologies written in white text over a black background.
Musk is supposed to pay $54.20 per share for Twitter, which comes to $43.4 billion, but Twitter's share price has dropped to $36.81 since the deal was signed in April. That is one fact he hopes will help get out of the deal. A letter(opens in new tab) sent by Musk's lawyers to Twitter's lawyers poses that Twitter's «recent financial performance and revised outlook» might be a valid reason to cancel the purchase.
However, the main reason Musk says he should be let off the hook first came up in May, when he said the deal was on hold while his team assessed the prevalence of «spam/fake accounts» on Twitter. According to Musk's side, Twitter failed to provide the «data and information necessary» to make that assessment.
Twitter reportedly planned to offer(opens in new tab) Musk a «firehose» of raw data in June, and said yesterday that it removes over a million spam accounts every day(opens in new tab). The company does not accept Musk's attempt to cancel the 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,» said Bret Taylor, chair of the Twitter board.
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. We are confident we will prevail in the Delaware Court of Chancery.July 8, 2022
When the purchase deal was signed, Musk agreed to a $1 billion fee should
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