After much delay, it’s clear: The $44 billion deal goes into the sink. The case may end in court.
This came In a document from Elon Musk’s lawyer to the SEC on Friday.
They claim that Musk received not enough information, but rather misleading information, which gives Musk the right to cancel the purchase.
Twitter shares fell sharply by 6 percent after the announcement.
Twitter goes to court
However, it is not certain that this alone will be enough to plug the breach.
The AP news agency wrote that Twitter responded that it will now sue Musk for breach of contract, thus forcing the purchase anyway. They say they think they will win.
And it was previously reported that Musk and Twitter had a clause to breach the agreement for one billion dollars, barely ten billion crowns.
Brett Taylor, Twitter CEO, wrote that they still plan to complete the purchase:
“The Twitter board is determined to complete the transaction at the price and terms agreed with Mr. Musk,” he wrote on Twitter.
In April, it became known that the businessman wanted to buy Twitter for $44 billion – just over 440 billion kronor.
The acquisition sparked reactions, including from the European Union, which was concerned that Musk’s plans could cause Twitter to breach EU regulations.
One reason for the takeover was that the Tesla mogul wanted complete freedom of expression on social media, he said.
Video: Elon Musk is no stranger to outbidding himself. Do you remember this dance:
Account fraud allegations
On May 13, the billionaire – on Twitter – confirms it acquisition suspended, Because he believes that the company did not provide him with enough information about how many users of the site are called bots.
Twitter, for its part, estimates that fake accounts account for less than five percent of its revenue-generating users.
It is this lack of information about fines that now makes Musk want to terminate the agreement, as shown in the letter sent from his attorney to the US FSA:
Twitter has not yet managed to provide much information, despite repeated requests from Musk, it was contained in the document delivered on Friday.
According to the United States CNBCMusk’s accusations are based on his review of fake Twitter accounts. For its part, Twitter said that the number of fines cannot be calculated based on public information only.
Video: How Musk handled the bug during the launch of the new Tesla truck in 2019:
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”