Elon Musk accuses Twitter of ‘material breach’ of agreement – threatens to cut $ 44 billion deal – highlights of Bitcoin

Elon Musk accuses Twitter of ‘material breach’ of agreement – threatens to cut $ 44 billion deal – highlights of Bitcoin

Tesla and Spacex CEO Elon Musk believes that Twitter is significantly violating the merger agreement with him, so he has the right to terminate the agreement. The social media giant refused to provide critical information regarding spam and fake orders on its platform, Musk’s legal team explained.

Elon Musk could terminate his $ 44 billion buyout offer on Twitter

U letter submitted by Twitter Inc. on Monday, which was also submitted to the U.S. Securities and Exchange Commission (SEC), Elon Musk’s legal team wrote:

Twitter… refused to provide information provided by Mr. Musk has repeatedly asked since May 9, 2022, to facilitate his assessment of spam and fake accounts on the company’s platform.

“Sir. Musk has made it clear that he does not believe that the company’s loose testing methodologies are adequate, so he must conduct his own analysis,” Musk’s lawyer added.

The letter states that Twitter is required to provide the information Musk requested under the merger agreement. Musk’s legal team further argued that the requested data was necessary to form a complete and accurate understanding of Twitter’s active user base, which is “the very core of Twitter’s business model.”

Tesla’s CEO suspects that Twitter’s refusal to comply with the merger agreement could mean that “the company is withholding the requested data due to concerns about what Mr. Musk’s analysis of the data will reveal,” the lawyer said in detail.

Furthermore, the head of Spacex believes that Twitter is “actively resisting and interfering with its right to information … under the merger agreement,” the letter said, adding:

This is a clear material violation of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights arising from this, including its right not to execute the transaction and the right to terminate the merger agreement.

According to Twitter’s proxy statement in April, Musk was quick to make his “best and final” offer of $ 44 billion without any verification. “Sir. Musk did not ask for a confidentiality agreement nor did he ask Twitter for any non-public information regarding Twitter,” the social media company said in a statement. Twitter used this reason to reject Musk’s request for information. .

On Monday, a Twitter user explained that the social media giant could be responsible for omitting or misleading material facts. He explained that waiving due diligence does not mean that you have to accept false detection, such as underestimating the number of spam bots.

Musk agreed, tweeting, “That’s right.”

Elon Musk accuses Twitter of ‘material breach’ of agreement – threatens to cut $ 44 billion deal – highlights of Bitcoin

Musk has been complaining about spam bots on Twitter for a long time. He called it “the only most annoying problem”On Twitter, promising to solve the problem if it is successful in downloading the platform. “If our Twitter offer succeeds, we’ll beat the spam bots or die trying!” he confirmed. Ever since his offer was accepted by Twitter, Musk has been discussing how to solve the problem of spam bots on the platform, including using meme cryptocurrency dogecoin.

However, last month he announced that his buyout deal on Twitter has now been reached put on hold, tweeting: “The Twitter contract is temporarily pending details that support the calculation that spam / fake accounts actually represent less than 5% of users.” Musk believes 20% or more of users are fake.

Under the merger agreement, Musk will have to pay Twitter a billion-dollar fee if he terminates his $ 44 billion in cash for a social media company. However, this changes if Twitter violates the contract.

Wedbusha analyst Dan Ives believes Musk wants to terminate his contract with social media company. Noting that Twitter will fight the charges, he tweeted Monday:

Our view: Musk wants to drop the deal.

Do you think Twitter is hiding something? And, do you think Elon Musk should give up on the deal? Let us know in the comments section below.

Elon Musk accuses Twitter of ‘material breach’ of agreement – threatens to cut $ 44 billion deal – highlights of Bitcoin

Kevin Helms

A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects and the crossroads between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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