Elon Musk accuses Twitter of making misleading statements about the number of fake accounts.
Billionaire Elon Musk announced on Friday US time that it was canceling the Twitter deal.
Musk accuses Twitter of “misleading statements about the number of fake accounts”. According to Musk, Twitter materially violated the contract related to the transaction.
According to Musk’s lawyer, on this basis, Musk has the right to abandon the deal.
A notification of the cancellation has been submitted to the SEC, which oversees the US securities market.
In April Elon Musk announced that he will buy Twitter for about 44 billion US dollars. The amount corresponds to approximately 41 billion euros.
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.
“The Twitter deal is temporarily frozen while we wait for details that confirm the calculations that fake accounts are actually less than five percent of users,” Musk tweeted.
Musk has also protested by barking at Twitter management. According to Musk, there are too many accounts on the platform that are not genuine. According to Musk, he did not get a real picture of the matter. Among other things, Musk tweeted the poop emoji, which he used to show his displeasure with the matter.
According to Twitter, there are 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 that he intends to follow through on the deal he made.
In June, the company commented that it intends to complete the transaction with 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,” the chairman of Twitter’s board of directors Bret Taylor tweeted.
“We are confident that we will win.”
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 agreement to be implemented.
Legal experts according to Musk can’t 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.
Initially, Musk said he wanted to defend freedom of speech through his acquisition.
Musk Friday’s announcement did not come as a surprise. Yesterday the US newspaper Washington Post reported, citing unnamed sources, that the trade is faltering and badly.
Twitter’s share price began to fall after the announcement. Twitter’s price was down 5.11 percent at around 2 a.m. Finnish time.
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