After weeks of telegraphing the move, Elon Musk is officially attempting to walk away from his $44 billion deal to buy Twitter and take it private.
“Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement [and] appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement,” writes Musk’s legal team in a letter to Twitter chief legal officer Vijaya Gadde. The missive, also filed with the Securities and Exchange Commission, came late on a summer Friday afternoon.
As stated in the letter, Musk’s complaints relate to his demand that Twitter supply him with various kinds of user data so that he could perform his own investigation of Twitter’s bot problem. Twitter provided some data, but said it couldn’t provide all the data requested because of user privacy concerns.
Musk agreed to buy Twitter for a price of $44 billion on April 25, a sum that many saw as very generous given Twitter’s struggles to grow its user base and revenue. And that was before tech stocks began tanking in May. Twitter’s stock sold for $51.70 on the day the deal was announced but had fallen to $36.81 per share by Friday’s close.
Now it seems likely that the Musk-Twitter saga will play out in the courtroom. Even if Musk proves that Twitter materially broke elements of the sale agreement, he may be on the hook for $1 billion in breakup fees. And the consensus among legal experts is that Musk’s complaints don’t meet the bar set by the agreement, which said that the deal must go forward, barring any major changes to Twitter’s business.
“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,” tweeted Twitter chairman Bret Taylor in response to Musk’s letter. “We are confident we will prevail in the Delaware Court of Chancery.”
Melden Sie sich an, um einen Kommentar hinzuzufügen
Andere Beiträge in dieser Gruppe
Most of us are used to using internet chatbots like ChatGPT and
Intel‘s promised $28 billion chip fabrication plants in Ohio are facing further delays, with the first factory in New Albany expected
TikTok and Instagram are flooded with reels of food influencers hyping already viral restaurants or bringing hundreds of thousands of eyes to hidden gems. With sauce-stained lips, exaggerated chew
An unsubstantiated online theory has recently taken hold, claiming that family vloggers are fleeing Los Angeles to escape newly introduced California laws designed to protect children featured in
At a press conference in the Oval Office earlier this month, Elon Musk—a billionaire who is not, at least formally, the President of the United States—was asked how the Department of Government Ef
Last Energy, a nuclear upstart backed by an Elon Musk-linked venture capital fund, says it plans to construct 30 microreactors on a site in Texas to supply electricity to data centers across the s
Democratic lawmakers demanded answers from billionaire Elon Musk’s Department of Govern
