Earlier this year, Elon Musk made breaking news when he suddenly confirmed buying Twitter for $44 billion. The deal seemed too good to be true. But now there is a change of decision. Elon Musk Twitter deal is on the verge of calling off since the Tesla CEO had done something that hints at this unfortunate situation.
In spite of being one of the richest men in the world, the Elon Musk Twitter deal may not get finalized after he had sent a letter to Twitter’s board. He declared about terminating the acquisition months after confirming to buy the social media platform.
How Did Twitter React To Elon Musk Twitter Deal Termination?
Though Elon Musk Twitter deal may just end up being only a piece of news. The letter may have shocked Twitter’s board but Bret Taylor, the chairman of Twitter’s board is refusing to accept it.
In response to the letter and Elon Musk’s Twitter deal that he is currently trying to call off, he tweeted that Twitter’s board is “committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.”
Liza Minnelli has outlived Elon Musk’s deal to buy Twitter. The mogul has terminated his acquisition of the company.
— LizaMinnelliOutlives (@LiZaOutlives) July 8, 2022
Twitter, on the other hand, could have secured a lump sum of $1 billion as a break-up fee. Even if the Elon Musk Twitter deal wouldn’t have gotten finalized, Musk was offering to pay a $1 billion breakup fee as compensation. But CEO Parag Agrawal is insisting that “he wants to consummate” and even the entire company’s board is prepared for it.
Republican Elon Musk has terminated his Twitter deal. What did Elon gain from this charade? Nothing. His Tesla stock plummeted, he lost every liberal customer, and he embarrassed himself on the global stage. Another MAGA conman who failed to deliver on his promise. Good riddance!
— Dash Dobrofsky (@DashDobrofsky) July 8, 2022
This conflict is between the world’s richest man and one of the best social media platforms. The matter of Elon Musk Twitter deal was made public since most of this drama happened on Twitter. Musk, who has over 100 million followers on Twitter, claimed that this popular social media isn’t delivering or standing by its “potential as a platform for free speech”.
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The Aftermath of Not Finalizing Elon Musk Twitter Deal’
The ongoing feud has heavily impacted the shares of Twitter. On Friday alone, Twitter’s share price got affected after the Elon Musk Twitter deal fiasco. The price of the shares witnessed a downfall of 5% and was reduced to $36.81. It went a lot below the mark of $54.20 that Musk was considering paying during its initial deal. Besides, the impact of Elon Musk Twitter’s deal drama led to the rise in the shares of Tesla. It increased by 2.5% and attained $752.29.
Referring to the letter that Musk had sent, his lawyer Mike Ringler had written that for close to two months, Musk has been collecting and assessing all the data. Even after such a long period, there are multiple fake or spam accounts that are existing on this world-famous social-media platform.
A part of the letter stated, “Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.” Even the legal break-up fee was also mentioned in the contract.
On Thursday, the social media giant did talk about how serious it is with filtering spam accounts. With a briefing to journalists and company executives, Twitter stated that the company removes “1 million spam accounts each day”. To determine the malicious intent of these accounts, Twitter claimed to review thousands of random accounts with public and private data.
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They analyze everything such as IP address, geolocation, the behavior and pattern of the account, phone numbers, and more to determine whether the account is real or fake.
To solidify Elon Musk’s Twitter deal, the social media platform even gave “access to its firehose”. As a matter of fact, Twitter is also responsible for the drama surrounding the Elon Musk Twitter deal. As per Ringler, Twitter breached the agreement regarding firing the company’s revenue product leader, and general manager of consumers as well as planning to lay off almost one-third of the company’s talent acquisition team.
According to the sale agreement, Twitter was supposed to “seek and obtain consent” from Musk while proceeding with its normal business.
The letter also highlighted that Twitter should have “preserved substantially intact the material components of its current business organization.”
Elon Musk’s Twitter deal journey started in late March. He was initially offered to acquire stakes in the company. But in April, Twitter’s CEO revealed that Musk had bid to buy Twitter. It was shocking but the deal still got accepted. Now, Elon Musk’s Twitter deal is at risk and it is hard to say whether it will be finally happening or not. What are your thoughts on it? Will it happen or not?
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