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Elon Musk is attempting to halt his $44 billion (£36 billion) purchase of Twitter, claiming many violations of the contract. The announcement follows the world’s richest person’s decision to purchase Twitter in April as the most recent twist in a protracted saga. Mr. Musk claimed that the reason for his withdrawal was that Twitter has not given sufficient details regarding the quantity of spam and false accounts. According to Twitter, legal action will be taken to enforce the contract. Twitter CEO Bret Taylor tweeted, “The Twitter Board is committed to complete the acquisition on the price and terms agreed upon with Mr. Musk,” setting the stage for what may become a protracted court battle. A $1 billion (£830 million) break-up fee is stipulated in the original merger agreement.
In May, Mr. Musk stated that the agreement was “temporarily on pause” while he awaited information regarding the quantity of spam and false Twitter accounts. The company’s claim that less than 5% of its users are spam and bot accounts was challenged by the wealthy businessman, who demanded proof. Mr. Musk’s attorney claimed in a letter sent to the US Securities and Exchange Commission that Twitter had either failed to give or refused to supply this information. The letter states that Twitter has “at times ignored Mr. Musk’s requests, at times rejected them for reasons that appear to be unjustifiable, and at other times pretended to comply while providing Mr. Musk with inaccurate or incomplete information.” Spam accounts are made to disseminate information to a big audience and influence how they use the platform. Twitter claimed on Thursday that it eliminates roughly 1 million such accounts daily. Mr. Musk thinks that up to 20% of Twitter users are likely to be spam or automated accounts. Following the news, Twitter’s stock dropped by 7% in after-hours trade.
For some weeks, Elon Musk has been attempting to learn how many daily active Twitter users there are. Bots are a concern on Twitter. In fact, it only recently claimed to be removing a million spam accounts daily. In a filing, Mr. Musk claimed that he had frequently requested information regarding the number of Twitter bot accounts but had been denied access to it, which is why he wanted to end the agreement. However, Elon Musk has already signed this agreement, so it is unclear at this point if he can back out. Mr. Musk will have to provide evidence that Twitter broke their contract. There are more reasons Mr. Musk might decide to back out of the agreement. Did Musk offer too much? Given the recent sharp decline in the stock price of major tech companies. Additionally, there was the proposed merger’s effect on Mr. Musk’s other businesses. Since he revealed his interest in Twitter, the share price of Tesla has drastically decreased. His stance on free speech and how Twitter might filter in the future—based on the legal systems of other nations—also occasionally came out as naive.
Following a wave of resignations from inside his own party that undermined his authority and rendered the British government inoperable, Boris Johnson resigned as the head of the Conservative Party on Thursday, clearing the way for a new prime minister. Johnson said, "It is now obviously the decision of the parliamentary Conservative Party that there should be a new head of that party and hence a new prime minister," while […]
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