In an unexpected turn of events, Tesla CEO Elon Musk has announced his intention to end the $44 billion Twitter deal in a letter sent to the networking giant’s board of directors. social.
In a nutshell, The richest man in the world is not happy with the lack of information Twitter provided about spam and fake accounts. According to the letter, addressed to Twitter Chief Legal Officer Vijaya Gadde, Musk is terminating the merger because Twitter “appears to have made false and misleading representations” that Musk used as a benchmark for his decision.
Elon Musk initially agreed to buy the crypto-friendly social media platform for $54.20 per share, or about $44 billion., cash. Twitter’s board of directors was pleased with the decision, voting unanimously in favor of the deal that would make it a private company again.
Nevertheless, The letter filed with the SEC argued that Twitter was unclear about two crucial pieces of information: Twitter’s process for auditing monetizable daily active users (mDAU) for spam and fake accounts, as well as for identifying and suspending such accounts. beads. The social media giant reportedly kept mDAU’s daily measurements a secret for the past two years. The letter says:
“In short, Twitter has failed to provide the information that Mr. Musk has requested for nearly two months despite his repeated and detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information requested in the Twitter feeds.” Mr. Musk’s original requests.”
Next, the letter claims that Twitter is in breach of two sections of the merger agreement (sections 6.4 and 6.11). The letter says that the social media company has been notified of its breach since June 6, and “any curation period granted to Twitter under the Merger Agreement has expired.”
However, Twitter’s board of directors is not at all happy that Elon Musk has terminated the agreement and abandoned the transaction. In a TweetTwitter Chairman Bret Taylor said the board is looking to close the transaction at the previously agreed price and will pursue legal action if necessary.. “We are confident that we will prevail in the Delaware Court of Chancery,” Taylor wrote.
This story is in development and will be updated.
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