For its part, Twitter has announced its intention to initiate legal action to enforce the purchase agreement. Musk and Twitter agreed to a $1 billion penalty to be paid by any party that backed out of the deal.
Euskaraz irakurri: Twitter erosteko kontratua deuseztatzeko asmoa du Elon Muskek
The founder and CEO of Tesla, Elon Muskhas communicated to Twitter its intention to terminate the purchase contract of the social network considering that the company is “in substantial breach of multiple provisions” of the agreement that both parties signed last April.
In a letter shared by the tycoon’s legal team, Musk has informed Twitter of his intention to paralyze the purchase of the social network after having formally requested information related to the number of false accounts found on the platform on several occasions. as well as Twitter’s way of auditing and suspending them.
Musk had been publicly questioning Twitter’s ‘bot’ numbers for weeks, which many analysts saw as an attempt to drive down the tech giant’s share price. Twitter stocks plummeted more than 6% in post-announcement operations, according to the CNN network.
Twitter stock crash
In fact, Twitter shares have started the session this Monday with a drop of more than 7%. In this way, Twitter shares sank 7.4% to $34.09, its lowest price since mid-March and far from the $54.20 contemplated in Musk’s proposal.
In mid-Maythe tycoon decided to temporarily suspend the purchase of Twitter, agreed at the end of last April by about 44 billion dollarspending details to support the company’s calculation that fake/spam accounts represent less than 5% of the users.
Subsequently, by means of a letter sent begining of June by Musk’s lawyers to the United States Securities Market Commission (SEC), the billionaire’s legal team considered Twitter’s position a “substantial breach” of its obligations under the merger agreement, for which they warned that Elon Musk “reserves all resulting rights, including his right not to consummate the transaction and his right to terminate the merger agreement.”
legal battle
For its part, Twitter has announced its intention to initiate legal action to enforce Musk’s purchase agreement.
Musk and Twitter agreed $1 billion penalty to pay for any party that withdraws from the agreement, although if Twitter intends to force the purchase under the agreed terms, things could get complicated for the South African tycoon, according to the aforementioned chain.
Musk has responded with his most characteristic language, that of the memesto the legal battle that Twitter plans to undertake to force it to buy the company.
The founder of Tesla and SpaceX has used his own portrait to compose some vignettes in which he tells his side of the story, recalling that at first “they said I couldn’t buy Twitter” and after agreeing to the acquisition the company “didn’t disclose information about ‘bots’ or false accounts”, an issue that he considers key.
With some photos in which he laughs and expresses mockery, the billionaire implies that he is winning with this controversy, since -he assures- if they want to “force” him to buy Twitter in court, that will mean that the company will have to disclose to the Justice the information about bots that he denied to him.
— Elon Musk (@elonmusk) July 11, 2022
Source: Eitb
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