Elon Musk is threatening to pull out of his $44 billion acquisition of Twitter if the company does not provide more information on how it calculates the number of fake accounts.
In a letter delivered to Twitter on Monday and filed with the Securities and Exchange Commission, Mr. Musk’s lawyers at the law firm Skadden, Arps, Slate, Meagher & Flom argued that Twitter was “actively resisting and thwarting” Mr. Musk’s rights under the terms of his deal to acquire the social media company. His lawyers accused Twitter of a “clear material breach” of its obligations and said that Mr. Musk had the right to break off the agreement as a result.
The letter said Mr. Musk had “repeatedly” requested more information about how Twitter measured spam and fake accounts on its platform and that he had “made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis.”
The letter featured the most direct words yet about Mr. Musk potentially scrapping the deal, something he has, so far, obliquely suggested he might do through tweets and other off-the-cuff statements. The letter also presents a new legal argument for pulling out of the deal, opening a new front in the increasingly bitter back and forth.
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A fool can throw out more questions than a wise man can answer. -RZehr
Twitter has a big problem. They claimed in an earlier financial filing that only 5% of accounts are fake (it is obvious the real number is a lot higher than that). If they actually have a lot fewer real users than they claimed, they have a problem with their advertisers - and a problem that they engage in financial misrepresentation when Musk placed his bid to buy them.
I would foresee Twitter's stock getting pounded into the ground and the company getting bought in a fire sale. Musk will come out a clear winner in this as his own stock shoots back up and Twitter's continues to plummet.
Josh wrote: ↑Mon Jun 06, 2022 6:09 pm
Twitter has a big problem. They claimed in an earlier financial filing that only 5% of accounts are fake (it is obvious the real number is a lot higher than that). If they actually have a lot fewer real users than they claimed, they have a problem with their advertisers - and a problem that they engage in financial misrepresentation when Musk placed his bid to buy them.
I would foresee Twitter's stock getting pounded into the ground and the company getting bought in a fire sale. Musk will come out a clear winner in this as his own stock shoots back up and Twitter's continues to plummet.
These questions have been ongoing for some weeks. (i’m not aware of a final decision.)
No one can negotiate a lower purchase price AFTER closing the transaction. Sellers often negotiate down to secure the sale.
mike wrote: ↑Sat Apr 30, 2022 5:41 pm
I don't know what it all means, but my feeling is that Twitter will be better and more free under his leadership.
Is "more free" better? Doesn't "more free" mean more lies and more hate speech?
Josh wrote: ↑Mon Jun 06, 2022 6:09 pm
Twitter has a big problem. They claimed in an earlier financial filing that only 5% of accounts are fake (it is obvious the real number is a lot higher than that). If they actually have a lot fewer real users than they claimed, they have a problem with their advertisers - and a problem that they engage in financial misrepresentation when Musk placed his bid to buy them.
I would foresee Twitter's stock getting pounded into the ground and the company getting bought in a fire sale. Musk will come out a clear winner in this as his own stock shoots back up and Twitter's continues to plummet.
This isn’t about fake accounts. Elon waived all his rights to further examine the company financials when he made his offer.
This is about Elon trying to wiggle out of a $54.20 per share purchase contract when the share price has since dropped to $39.
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A fool can throw out more questions than a wise man can answer. -RZehr
Josh wrote: ↑Mon Jun 06, 2022 6:09 pm
Twitter has a big problem. They claimed in an earlier financial filing that only 5% of accounts are fake (it is obvious the real number is a lot higher than that). If they actually have a lot fewer real users than they claimed, they have a problem with their advertisers - and a problem that they engage in financial misrepresentation when Musk placed his bid to buy them.
I would foresee Twitter's stock getting pounded into the ground and the company getting bought in a fire sale. Musk will come out a clear winner in this as his own stock shoots back up and Twitter's continues to plummet.
This isn’t about fake accounts. Elon waived all his rights to further examine the company financials when he made his offer.
This is about Elon trying to wiggle out of a $54.20 per share purchase contract when the share price has since dropped to $39.
Yes, the richest man in the world didn’t know what he was doing.
mike wrote: ↑Sat Apr 30, 2022 5:41 pm
I don't know what it all means, but my feeling is that Twitter will be better and more free under his leadership.
Is "more free" better? Doesn't "more free" mean more lies and more hate speech?
Generally, I would say yes. Note that I said "better" and "more free" as two separate things.
There are already plenty of lies and hate speech on Twitter. My impression however is that these things are tolerated more so when they come from certain political and ideological positions. If Musk actually takes over Twitter, my guess is that there would be less censorship generally.
July 8 (Reuters) - Elon Musk, the chief executive officer of Tesla (TSLA.O) and the world's richest person, said on Friday he was terminating his $44 billion deal to buy Twitter (TWTR.N) because the social media company had breached multiple provisions of the merger agreement.
Twitter's chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement. read moreJuly 8 (Reuters) - Elon Musk, the chief executive officer of Tesla (TSLA.O) and the world's richest person, said on Friday he was terminating his $44 billion deal to buy Twitter (TWTR.N) because the social media company had breached multiple provisions of the merger agreement.
Twitter's chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement. read more
I expect all the attorneys on both sides are already pouring over the plans for their new yachts. Apparently it's not as simple as just paying the $1 billion breakup fee. The terms of the contract are such that he can be required to purchase Twitter at his asking price, should the courts so rule.
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A fool can throw out more questions than a wise man can answer. -RZehr
mike wrote: ↑Sat Apr 30, 2022 5:41 pm
I don't know what it all means, but my feeling is that Twitter will be better and more free under his leadership.
Is "more free" better? Doesn't "more free" mean more lies and more hate speech?
Should we regulate speech more here to make it better?
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Try hard not to offend. Try harder not to be offended.
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