{"id":39131,"date":"2022-06-06T17:23:04","date_gmt":"2022-06-06T17:23:04","guid":{"rendered":"https:\/\/harchi90.com\/elon-musk-threatens-to-abandon-44bn-twitter-takeover\/"},"modified":"2022-06-06T17:23:04","modified_gmt":"2022-06-06T17:23:04","slug":"elon-musk-threatens-to-abandon-44bn-twitter-takeover","status":"publish","type":"post","link":"https:\/\/harchi90.com\/elon-musk-threatens-to-abandon-44bn-twitter-takeover\/","title":{"rendered":"Elon Musk threatens to abandon $ 44bn Twitter takeover"},"content":{"rendered":"
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Elon Musk has threatened to walk away from his $ 44bn acquisition of Twitter, complaining that the social media company has failed to provide sufficient information about spam and fake accounts.<\/p>\n

Musk has repeatedly criticized Twitter’s claim that less than 5 per cent of its monetisable daily active users are bots, warning last month that his takeover \u201ccannot move forward\u201d unless the platform provides proof. <\/p>\n

In a letter to Twitter’s chief legal officer that was disclosed in a regulatory filing on Monday, Musk’s lawyers at Skadden, Arps, Slate, Meagher and Flom wrote that the Tesla chief believes the company has \u201crefused to provide the information that [he] has repeatedly requested since May 9 “. <\/p>\n

But Twitter insisted it would hold Musk to the original merger agreement. \u201cTwitter has and will continue to cooperatively share information with Mr Musk to consummate the transaction in accordance with the terms of the merger agreement,\u201d a spokesperson said. “We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms. “<\/p>\n

Since Musk and Twitter announced the deal in April, shares in Tesla along with high-growth tech companies have fallen sharply. Observers have noted that Musk, because of the market turmoil, may try to find an excuse to reduce the transaction price or walk away altogether. <\/p>\n

Musk’s lawyers said that Twitter was \u201cactively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement\u201d and this \u201cclear material breach of Twitter’s obligations\u201d would allow Musk to \u201cterminate the merger agreement\u201d.<\/p>\n

The letter broaches the idea that the deal financing from Wall Street banks could be at risk if Twitter does not furnish the information that has been requested. \u201cAs Twitter’s prospective owner, Mr Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership of him and to facilitate his transaction financing,\u201d Skadden wrote in its letter by him. <\/p>\n

It is not straightforward for Musk to escape his obligation to close the transaction. A financing failure may provide one route, although it would still involve him paying a $ 1bn termination fee.<\/p>\n

Such legal maneuvers to walk away from transactions rarely work but Musk may be seeking negotiating leverage to force Twitter into a settlement that would allow him to pay to escape from buying the company. <\/p>\n