Tesla CEO Elon Musk, the world’s wealthiest person, said social media companies would close $ 44 billion to buy Twitter after violating multiple terms in the merger agreement. rice field.

Twitter Chairman Bret Taylor said the board plans to take legal action to enforce the merger agreement on the microblogging platform.

“The Twitter board has promised to close the deal at the price and terms agreed with Mr. Musk …” he wrote.

In the filing, Musk’s lawyer said Twitter failed or refused to respond to multiple requests for information about fake or spam accounts on the platform. This is the basis of the company’s performance.

“Twitter has made a serious breach of several provisions of the deal, and seems to have made false misunderstandings that Mr. Musk relied on when concluding the merger deal,” Filing said.

Musk also said that Twitter had dismissed one-third of its high-ranking executives and talent acquisition teams and violated Twitter’s obligation to “maintain the key components of the current business organization virtually intact.” He said he had gone away.

Twitter’s share was down 6% to $ 34.58. That’s 36% below $ 54.20 per share, which Musk agreed to buy Twitter in April.

After Musk invested in the company in early April, Twitter’s share price soared, protecting Twitter from a major sale of the stock market that blamed other social media platforms.

However, after he agreed to buy Twitter on April 25, investors speculated that Mask could leave the deal, and stock prices began to fall within a few days. With a fall after the bell on Friday, Twitter has been trading at its lowest since March.

This announcement is another twist of will after Musk signed a deal to buy Twitter in April and put the acquisition on hold until it proved that social media companies account for less than 5% of spambots. .. Its total number of users.

The deal requires Musk to pay Twitter a $ 1 billion installment if the transaction cannot be completed due to reasons such as the acquisition funding failing or the regulator blocking the transaction. However, if Mask closes the transaction himself, the split fee will not apply.

Mask’s decision could lead to a long-term legal dispute between a millionaire and a 16-year-old company based in San Francisco.

Wedbush analyst Daniel Ives said the mask submission was bad news for Twitter.

“This was a catastrophic scenario for Twitter and its board of directors, and the company is now fighting Mask and engaging in a lengthy court battle to regain transactions and a minimum of $ 1 billion in dissolution fees,” he told customers. I wrote it in a memo.Reuters

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