Musk cancels Twitter purchase
Expert with sharp accusation: Did Musk only want to sell Tesla shares?
Twitter wants to enforce the deal in court
tech billionaire Elon Musk has canceled its agreement to purchase Twitter. The entrepreneur and Tesla boss originally wanted to put 44 billion US dollars on the table for the internet company, which was subsequently to be taken off the stock exchange. But in the past few weeks there have been discrepancies surrounding the billion dollar deal: Musk has repeatedly pointed out that he considers the number of fake accounts sent to him by Twitter to be wrong. Musk’s lawyers, who described this as a breach of contract, said he was not given sufficient access to the data to verify the information. As a result, the billionaire canceled the purchase agreement.
Doubts about Musk’s acquisition plans
Speculation has been growing for weeks that the deal between Musk and Twitter could burst. In addition to the disagreements about the number of fake accounts on the platform, there were also repeated rumors that the agreement could collapse with regard to the share price. Because the amount that Musk wanted to pay for Twitter, the company is not worth on the stock exchange: the $ 44 billion offer is compared to a current market capitalization of around $ 28 billion.
Expert with sharp accusation against Musk
Meanwhile, someone else is sharply accusing Elon Musk: the whole takeover was a “clever trick,” tweeted Josh Wolfe, one of the co-founders of Lux Capital. Instead, Musk used the alleged deal as an excuse to sell $8.5 billion worth of Tesla stock. There is an “80 percent probability” that Musk will pay the $1 billion penalty fee associated with the failed takeover, but he has secured $7.5 billion in cash at the time.
Wolfe cannot understand the reason Musk supposedly put forward for the fake accounts: who really thinks “he can land rockets but not get bots under control?” said the market expert with a view to Musk’s second successful company alongside Tesla, the space company SpaceX .
entire thing was clever ruse to
SELL + LIQUIDATE $8.5 BILLION of TESLA STOCK
(w/plausible excuse for doing it)80% odds Elon pays $1B breakup fee
+ walks away with $7.5B liquidated
20% spends $100M fighting litigationhonestly think he can “land rockets”
but cant fix bots? https://t.co/HTyOM3V36B– Josh Wolfe (@wolfejosh) July 8, 2022
Twitter wants to enforce the deal – Musk reacts sarcastically
Meanwhile, Twitter itself wants to have the takeover by Musk enforced in court. Twitter Chairman Bret Taylor posted a statement on Twitter emphasizing that the company’s board of directors is committed to completing the transaction with Musk at the agreed price and terms. They also plan to take legal action to enforce the merger agreement and are confident of being successful in court.
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.
– Bret Taylor (@btaylor) July 8, 2022
Meanwhile, Musk himself has only spoken up indirectly on his favorite platform by publishing a meme in which he made fun of the fact that Twitter now has to make public information about fake accounts in court, which they voluntarily refused to tell him would have provided:
– Elon Musk (@elonmusk) July 11, 2022
Whether and under what circumstances the deal between Musk and Twitter can still go ahead will now probably be decided in a lengthy legal dispute.
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