After Elon Musk, Tesla boss, and SpaceX chief, broke the $44 billion deal for Twitter, there is a legal battle. This signals the end of a dream, for some, but a nightmare for others.
His lawyers assured Twitter that it has not fulfilled its obligations under the agreement in a Friday letter. This included not providing all information required about spam accounts and inauthentic accounts.
The letter stated that "Twitter failed multiple terms of the agreement and appears to have given false and misleading information on which Mr. Musk relied when entering into the acquisition contract."
Twitter repeatedly stated in recent weeks that there are fewer than 5% fake accounts on its platform. Multi-billionaire Bill Gates and his team believe the network lies, which could have a negative impact on the viability and valuation of the company.
Experts have been wondering for weeks if Elon Musk wanted to withdraw his offer or negotiate a lower price. The businessman is now open to legal action after he ends his commitment to purchase Twitter. In certain situations, both parties have agreed to pay severance payments of up to $1 million.
Bret Taylor, the platform's chairman, stated that the board was committed to closing the transaction at the agreed price. He also said that they would prevail in court.
Elon Musk's decision does not mean that the acquisition will be stopped. Ann Lipton, a Tulane University law professor, tweeted that Musk signed an agreement that he was legally bound to comply with. Analyst Dan Ives stated that this was a terrible scenario for Twitter and its board. The company will now face Musk in a long-running court battle to save the deal and/or recover at most $1 billion. .
Elon Musk's lawyers discuss in the letter recent layoffs and the ban on hiring. Analyst Carolina Milanesi said that they clearly "listed as many reasons possible to avoid having the fine paid".
After slowly - but discreetly - climbing to the capital of Twitter, the richest man on the planet offered to purchase Twitter for 54.20 dollars per shares, or 44 billion dollars. He said that he had a strong feeling that having a platform that is openly accessible and trustable was crucial for the future civilization at the Ted2022 conference.
On April 25, the CA tried to push him back, but he finally agreed to a final agreement with the libertarian-entrepreneur. The value of Twitter's title has dropped more than 25% since then. The stock of Tesla also plunged 25% during that period.
Analyst Angelo Zino from CFRA Research noted Thursday that Elon Musk's probable "remorse" was being expressed while the original price has, according the expert, become "laughable". To reach the full amount, the leader of South Africa was able to secure the support from several large fortunes as well as investment firms to reduce his share of the bank loans. Because these loans were backed by Tesla securities, they had caused concern in the markets.
The recent events have highlighted the differences between the San Francisco-based businessman and the Texas-born businessman. Elon Musk advocates for more strict content moderation and for the return of banned figures, like ex-President Donald Trump. His vision is not compatible with the views of many Twitter employees, elected Democrats, and associations. They are asking social media networks to fight hate speech, harassment, and misinformation in the interests of users and democracy.
The fiery entrepreneur is a fan of Twitter and has been followed by over 100 million people. During exchanges about spam, he mocked company executives and sent a poo-shaped Emoji to Parag Agrawal (the boss of the platform).
Carolina Milanesi notes that "Twitter has fallen into worse shape than it was when it began." She adds that "Executives have gone, nothing has progressed... But the worst thing is if Twitter forcibly forces the acquisition to occur." They would be stuck with an owner who isn't interested in the business and full of resentment.
