Musk backing out of Twitter deal
Elon Musk’s turbulent offer to buy Twitter for 44 billion USD has entered a new phase with Musk announcing that he is backing out of the deal arguing Twitter has not provided enough information about its users. The company’s chairman Bret Taylor tweeted that the company intends to finalize the deal that Musk earlier has offered.
Musk argues that Twitter has breached the deal because it will not share with him enough information to back up its claim that spam or fake accounts constitute less than 5% of its active users. Twitter has stood by this estimate that it is less than 5% but also said it’s possible the number of these accounts is higher.
Bret Taylor said the company will go to court and want to finalize the deal as earlier announced:
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
Musk’s Twitter ambitions were first discovered in early April when he announced that he bought a large number of shares in the company and was the company’s biggest shareholder.
Following normal procedures, Twitter management offered him a position as member of the board of directors. After some discussions, Musk said he would not join the board but offered to buy all of the company for the amazing amount of 44 billion USD.
The troubles started with the discussions about how many of Twitter’s account could be fakes or bots. Twitter management said less than 5% but Musk indicated it could be much higher and insisted the management proved its statement.
Management says it has provided data but Musk says it’s not enough. The discussions started speculations if Musk was trying to lower the price or back out of the deal.
Musk’s new announcement shows he is seeking to get out of the deal. However, with Bret Taylor’s statement that the company is going to court to finalize the deal, the Musk/Twitter story will go on for long.
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