February 8, 2023

Dubai Week

Complete Dubai News World

New increase .. Elon Musk threatens to cancel Twitter deal

The CEO of Tesla and SpaceX has warned. Elon MuskIt said it could withdraw from its $ 44 billion deal to acquire social media giant Twitter if it failed to provide the data it was looking for in fake accounts.

It is noteworthy that this is not the first time Musk has publicly suggested the possibility of canceling the deal. But in a letter to Twitter’s chief executive, Musk’s lawyer issued a warning. Twitter has accused him of violating the promises of the agreement.

Amid concerns that interest rates will rise in the face of the recession and inflation, Musk’s threats to cancel the deal are compounded by the collapse of several technology stocks, including Tesla, the electric car maker he drives.

Shares of Twitter fell 1.5% to $ 39.57, well below the agreed contract price of $ 52.20. Investors are betting on Musk to force Twitter to accept or withdraw the price reduction of the deal.

In a letter to Twitter, Musk’s lawyers reiterated their demand for Bot’s account details. In the letter, Musk stated that he had every right to suspend the acquisition as the company had clearly violated its obligations by not providing him with the information.

The company responded that it planned to terminate the contract based on the agreed terms. “Twitter continues to work with Musk to complete the transaction in accordance with the terms of the merger agreement,” the company said in a statement. Musk said removing pot accounts from the platform is one of his priorities.

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Musk tweeted in mid-May that the deal had been suspended and said it would not proceed until the company showed evidence that less than 5% of its total users were represented by bot accounts. He explained that he believes the user site will have at least 20% bot accounts.

Independent researchers estimate that 9% to 15% of millions of Twitter accounts may be bot accounts. In his letter, Musk said he needed data to conduct his own analysis of Twitter users because he did not trust the company’s testing methods.

Twitter has stuck to its filings with the US Finance Commission

Denial used in anticipation of bot accounts provides protection for the company against potential lawsuits. Whether the lawsuit or the lawsuits against the shareholders came from Musk because of the accuracy of the company’s regulatory data.

Musk needs to make it clear that even if Twitter’s rating is wrong, the company is trying to mislead, which is legally difficult.

Musk may abandon the contract or renegotiate it even if the law is on the company’s side.

The company may consider it reasonable to agree to a lower price or receive compensation from Musk. Instead of trying to force him to complete the transaction in court.

As part of the deal, Musk is required by contract to pay a $ 1 billion refund if he fails to complete the contract. According to Forbes, Muskin’s assets are worth $ 219 billion.

Last week hopeless regulators decided not to investigate Elon Musk’s acquisition of Twitter. As a result, the matter is unlikely to stumble for regulatory reasons.

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