Situs Slot Gacor

Musk threatens to drop the Twitter deal if false account data is not provided

June 6 (Reuters) – Elon Musk warned on Monday that he could turn down the $ 44 billion offer to buy Twitter Inc (TWTR.N) if the social media network failed to provide data on spam and fake accounts.

In a letter to Twitter, the billionaire reiterated his request for details of fine accounts, saying that he reserved all rights to terminate the merger since the company was in a “clear material breach”[ads1]; of its obligations by not providing him with the information.

Twitter shares fell as much as 5.6% to $ 37.92 and were traded at a sharp discount on Musk’s offer of $ 54.20 per share, indicating that investors did not expect the deal to close at the agreed price. . The stock was last down 2%, while Tesla rose 1.2%.

Sign up now for FREE unlimited access to

“Twitter has and will continue to cooperate in sharing information with Musk to complete the transaction in accordance with the terms of the merger agreement,” the company said in a statement.

It intends to terminate the agreement at the agreed price and terms, Twitter added

Musk put the deal “temporarily on hold” in mid-May, saying he would not proceed with the offer until Twitter showed evidence that spam bots account for less than 5% of total users.

Since then, the takeover saga has seen several twists and turns, raising questions about Musk’s intentions to complete the deal at the set price.

Although Musk has largely used the social media platform to air his views on the agreement and the company, this is the first time he has formally threatened to run away.

“It’s pretty obvious he has buyer’s regrets and he’s trying anything to get a price reduction, and I think he can succeed,” said Dennis Dick, a proprietary trader at Bright Trading LLC.

“You can see the sale of shares on social media, and he has realized that he paid too much … all this is tactics just to get a price reduction.”

Musk has questioned the accuracy of Twitter’s public registrations of spam accounts, claiming that they must make up at least 20% of the user base. Twitter has disagreed, with CEO Parag Agrawal giving details on how the company handles spam accounts in one of his recent tweets.

Musk is a self-proclaimed freedom of speech absolute, and has said that one of his priorities will be to remove “spam robots” from the platform. The Tesla Inc (TSLA.O) CEO owns 9.6% of Twitter and has over 95 million followers on the network.

As part of the deal, Musk is contractually obligated to pay a $ 1 billion dissolution fee – part of his $ 219 billion fortune estimated by Forbes – if he does not complete the deal. Twitter can sue for “specific performance” to force Musk to complete the deal and get a settlement from him as a result. read more

In his letter, Musk said he needed the data to perform his own analysis of Twitter users and that he did not believe in the company’s “relaxed testing methods.”

“He’s trying to walk away from the Twitter deal, this is the first shot in the arm,” said Wedbush analyst Dan Ives.

Musk has lined up several high-profile investors, including Saudi investor Prince Alwaleed bin Talal and Sequoia Capital, to fund the deal.

Elon Musk threatens to walk away from the deal
Sign up now for FREE unlimited access to

Reporting by Nivedita Balu in Bengaluru; Additional reporting by Tiyashi Datta; Author by Sweta Singh; Editing Anil D’Silva

Our standards: Thomson Reuters Trust Principles.

Source link

Back to top button