Elon Musk cancels the Twitter deal - Twitter plans to take the deal to court
Elon Musk has accused Twitter of misstating data on the number of followers that an account has by numbers that seem inflated. Elon is convinced that a portion of Twitter's active accounts are not real users but are instead "bots," or false users who follow and often retweet the said accounts in order to give the appearance of influence and online popularity, two things which may incentivize real users to follow the account.
BILLIONAIRE Elon Musk announced on Friday US time that he was canceling the Twitter deal. Billionaire Elon Musk is canceling the $44 billion Twitter deal on Friday, US media reports. A notification of the cancellation has been submitted to the SEC, which oversees the US securities market(you switch to another service).
Musk's concerns are that certain accounts on Twitter are not even be attributed to other people instead they appear to be things or accounts without a human face but rather one mimicking a real user online. According to Musk, Twitter materially breached the contract related to the transaction.
According to Musk's lawyer, on this basis, Musk has the right to abandon the deal.
It is reported that the Official request for cancellations has been submitted to the SEC, which oversees the US securities market.
In April, Twitter announced that Elon Musk reached an agreement to buy Twitter for approximately $30 billion as reported by TSNW8C39049.
The acquisition would have meant that Twitter would have left the stock exchange.
In May, Elon Musk said he wants to buy Twitter. However, my mind slowly started to change. In May, Musk said he would suspend the purchase process.
MUSK has also shown his opinion by barking at Twitter management. According to Musk, there are too many fake accounts on the platform that disguise themselves as real people. It is not clear whether Musk has been made aware of this serious problem because he tweeted the **** emoji in one of his tweets while voicing his dissatisfaction with the matter.
According to Twitter, there is only less than five percent of such fake accounts. According to Musk, the company has given incorrect information about the number of fake accounts.
TWITTER has repeatedly said it plans to close the deal.
In June, the company commented that it intends to complete the transaction on the agreed terms and price.
On Friday, the company announced that it would sue Musk in an attempt to force him to pay the purchase price.
- The Twitter board is committed to completing the transaction at the price and terms agreed with Musk. Twitter intends to take legal action to enforce the agreement, Twitter chairman Bret Taylor tweeted.
Twitter could have demanded a billion-dollar payment in the current situation. Now, however, it seems that the company is ready to fight for the deal to be completed.
ACCORDING TO LEGAL EXPERTS, Musk cannot just terminate the contract like that. Based on the agreement, the acquisition cannot be canceled unless there are substantial changes in the business. According to experts, no such changes have occurred.
Musk skeptics have argued that the fake accounts are a pretext for canceling the deal. According to skeptics, Musk would have realized that buying Twitter would be a bad deal for him, which is why the deal should be canceled under any pretext.
Yesterday, the United States newspaper The Washington Post reported that it was being difficult and there were problems behind closed doors regarding the sweetened offer by Musk to acquire the online media company.
This news didn't come as a surprise as back in August, Musk had made an announcement claiming he wanted to defend freedom of speech through his acquisition of the internet media company.
Twitter's share price began to fall after the announcement. Twitter's price was down 5.11 percent at around 2:00 am Finnish time.