Good day all. This news broke on Friday night and is still reverberating around the internet. Elon Musk announced that he was ending his plans to buy and take private Twitter
The reason for this, according to Musk, was Twitter’s refusing to provide the data he needed to determine just how many of the twitter accounts were actual, real people and not bots. According to the Post Millennial:
Space X and Tesla CEO Elon Musk has reportedly terminated his deal to buy Twitter. The billionaire reportedly sent a letter to terminate the deal on Friday. The deal has been on hold since May, after Musk demanded that the social media giant prove that bots are less than five percent of users.
That has been an ongoing problem. Twitter is probably way over valued and is certainly not worth the price that Musk offered. However, it is even worse, from the point of view of the Twitter management. If Musk walks away, the share price will collapse, and all the shareholders, not to mention the advertisers, are going to want to have a detailed look into Twitter’s business model and practices.
If it’s shown that Twitter’s management basically lied on all their reports, lawsuits will be the least of their problems. Since the management would prefer not going to jail, getting Musk to buy Twitter is a must. It now looks like the Twitter management is in a blind panic and is threatening to sue Musk if he doesn’t buy them out. Here are those details from the Post Millennial:
Shortly after it was announced that Tesla and SpaceX CEO Elon Musk would be terminating his buyout deal with Twitter, the social media giant’s board announced that they would be suing Musk.
In a tweet from Twitter Chairman Bret Taylor, he announced that the company’s board would be suing the billionaire, and that the board is still “committed to closing the transaction on the price and terms agreed upon with Mr. Musk.”
“We are confident we will prevail in the Delaware Court of Chancery,” Taylor added.
Don’t bet on it chump. If you go through with a lawsuit, you will be opening yourselves up to the discovery process. You might be able to play games with the SEC and what not, but a judge is going to take a very dim view if you decide to try and play those games in his or her court.
In a letter from Musk’s team to the SEC, it stated that Twitter had breached sections of the merger agreement between the company and Musk. The letter states that Musk has sought data and information necessary to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform” for nearly two months.
“For the past month, Mr. Musk has been clear that he views Twitter’s non-responsiveness as a material breach of the Merger Agreement giving him the right to terminate the Merger Agreement if uncured,” the letter reads. “Thus, Mr. Musk has been clear about his requests, his right to seek such information, and his view regarding Twitter’s material breach of the Merger Agreement.”
“Based on the foregoing refusal to provide information that Mr. Musk has been requesting since May 9, 2022, Twitter is in breach of Sections 6.4 and 6.11 of the Merger Agreement.”
The fight between Twitter and Elon Musk over the data requests has been both entertaining and informative. Many people have wondered about just how many bot accounts are on twitter, and for advertisers, how much money have they been paying for basically crap. I’m no lawyer, (Thank God!), but I see this being resolved in Musk’s favor very quickly. Either the court will order Twitter to provide the information, or they will say that Musk is free to back out of the deal. In the mean time, President Trump is over on Truth Social eating popcorn and enjoying the show.
Thatisall
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~The Angry Webmaster~
