The controversial $44 billion offer from Elon Musk to purchase Twitter has been withdrawn, putting the deal in danger of failing. Friday, the Tesla CEO informed the Twitter board in a letter that the acquisition had been terminated.
Twitter, however, is rejecting Musk’s claim. Bret Taylor, the board’s chair at Twitter, responded to the criticism by tweeting that the 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 sure that the Delaware Court of Chancery will rule in our favour.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk. We are confident we will prevail in the Delaware Court of Chancery,” Taylor said in his tweet.
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
Musk lawyer Mike Ringler wrote in the letter to Twitter dated Friday that for nearly two months, Musk has sought data to judge the prevalence of “fake or spam” accounts on the social media platform.
“Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the letter said. It also said the information is fundamental to Twitter’s business and financial performance, and it’s needed to finish the merger agreement.
“This is a disaster scenario for Twitter and its board,” Wedbush analyst Dan Ives wrote Friday in a note to investors. He predicted a long court fight by Twitter to either restore the deal or get a $1 billion breakup fee that was specified in the contract. “From the beginning this was always a head scratcher to go after Twitter at a $44 billion price tag for Musk and never made much sense to the Street, now it ends (for now) in a Twilight Zone ending with Twitter’s Board back against the wall and many on the Street scratching their head around what is next.”
Meanwhile, on Friday, shares of Twitter fell 5% to $36.81, well below the $54.20 that Musk had offered to pay. Shares of Tesla, meanwhile, climbed 2.5% to $752.29.
Also read: Mumbai Rains: Heavy rain continues, and IMD has issued a high alert for July 6–8
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.
