Elon Musk ‘terminate’ the Twitter $44 billion deal

Advertisements

The only thing I tweeted was a letter.

Jim Watson—AFP/Getty Images

If Elon Musk gets his way, the Twitter-Elon Musk partnership is over.

Late Friday, Musk sent a letter to Twitter’s legal department(opens in new tab) in which he sought to terminate the merger agreement between himself, his financial supporters, and Twitter, claiming that “Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect (as this)”

Advertisements

In addition, the letter was sent to the Securities and Exchange Commission (SEC).

Three months after Musk attempted to acquire the popular social networking site for $44 billion, he has now reversed his interest (opens in new tab).

Twitter’s spam and bot problem is a major concern. Twitter has pushed back against Musk’s claim that the network is overrun with bots. In the end, they agreed, but only after he requested an independent audit.

Advertisements

According to the letter, “This information has not been provided by Twitter. There have been occasions when Twitter has disregarded Mr. Musk’s demands, times when it rejected them for unjustifiable reasons, and times when it pretended to cooperate while providing Mr. Musk with insufficient or useless information.”

By making Twitter a more public square and pushing through the editable tweets feature (which Twitter is currently working on), Tesla CEO Elon Musk had huge hopes for Twitter, which he called “Twitterville.” After the January 6th assaults, there was considerable speculation that he may welcome former President Trump back to Twitter, but that was never verified.

He’d been keeping quiet about the contract in recent weeks and hadn’t tweeted that he wanted to stop it, despite earlier putting it on hold to gather more information about the amount of bots on the site.

Advertisements

It’s still unclear whether or not the agreement is genuinely dead. It seems that Twitter or its shareholders, who might have approved the purchase as soon as next month, are preparing to suit Musk.

There will be “legal measures” to enforce Twitter’s acquisition deal, Chairman Bret Taylor tweeted on Friday night.

Despite this, it is doubtful that Musk would accept a new contract without a battle.

Analysis: Now what

A simple “termination” of the agreement is not as simple as Elon Musk claims. Twitter’s board is preparing for a battle, despite the fact that some shareholders say they would prefer not to have Tesla CEO Elon Musk as an owner at all (opens in new tab).

Even though the company’s board of directors believes it will succeed, the merger process has caused significant doubt about the platform’s future. Musk looked to be ready to oust CEO Parag Agrawal and do a complete overhaul of the company. There was a disconnect between his vision for Twitter and the reality of how and why its users actually used it.

Advertisements

However, after a brief spike in mid-May when word of the merger broke, shares fell back to their pre-announcement levels.

As Twitter continues to grow and evolve, it may need a buyer to help fund those efforts. A new blog platform called Notes has been launched as a test this year as well as a number of other new features. However, it’s in a war with the TikTok juggernaut, much like other social media networks. It’s not apparent how Twitter can respond while staying loyal to what makes it a go-to platform for journalists, companies, celebrities, and millions of others.

If Elon Musk responds by saying, “Oh, no problem, I’ll purchase Twitter,” don’t hold your breath. They won’t like what he has to say when he responds to their retort on Twitter.

Advertisements

Musk has the financial resources to pay billions in fines. As a result, Twitter users should brace themselves for a prolonged conflict in which they may find themselves on the losing end.

Leave a Comment