The break comes after several months as the billionaire asked questions about the company’s number of bot users. Now Twitter could ask for divorce fees from the billionaire, but it could also be a large-scale lawsuit.
On Friday evening, Elon Musk confirmed that he announced on Twitter that the plan to buy the company had been terminated.
It appears in a report sent to the US Financial Services Commission (SEC).
The Rapporteur’s advisors (editor Elon Musk’s note) sent a letter to Twitter on July 8 in which they formally notified Twitter that the Rapporteur had terminated the merger agreement, according to the report.
Twitter shares fell 6 percent in after-sales services after the announcement.
The letter to Twitter states that Musk and his financial advisors at Morgan Stanley requested “important information” as of May 9, and “repeatedly thereafter” about the company’s relationship between the numbers published of active daily income-generating users and the spread of “fake or spam accounts” on the platform. .
Musk has used repeatedly since the agreement became known in April to ask questions about the number of spam accounts the company has. Twitter said less than five percent of users generating revenue daily fall into the category of spam accounts.
If there are questions about the reason for these questions, the May 25 message clarified that Musk’s goal is to understand the number of allegedly profitable Twitter users per month and the number of fake or spam accounts actually, according to the letter.
Even in these “frequent incidents”, Twitter reportedly did not provide enough information about how many users are called bot users.
For this reason, Musk’s advisors claim in the letter that Twitter violated one of the points in the acquisition agreement. They claim that this was negotiated in the agreement in order to be able to review data and information critical to the company’s operations before financing and executing the deal.
There have long been rumors that Musk could cancel the show. The agreement entails a reciprocal fee of $1 billion, if one of the parties breaches it. But Twitter can also take Musk to court to secure a higher breach fee, or require him to complete the purchase.
Twitter has not yet mentioned Musk’s advisors’ message.
It will cost Musk a billion dollars if he regrets on Twitter
Bids are more than 400 billion.
Fines are currently allowed on Twitter. But the company requires that bot accounts be marked. Twitter has introduced a separate classification for fines marked “good,” such as an account that reminds people through its tweets of the importance of self-care. However, spam bots are not allowed, and the company has guidelines aimed at combating them, Bloomberg wrote.
Twitter stated that the company faces several challenges before concluding the agreement with Musk, such as whether advertisers will continue to use Twitter and the potential uncertainty regarding the company’s future plans and strategy.
At the end of April, it became known that the board of directors of Twitter accepted the offer of Tesla President Elon Musk to buy the entire company, after a week and a half of fighting.
Musk’s bid amounted to $44 billion, equivalent to 402 billion Norwegian kroner at the exchange rate at the time.
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