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Friday, October 7, 2022

Elon Musk Has Plans To Terminate $44 Billion Twitter Takeover Plans

In quite an interesting series of events, the head of Tesla Elon Musk recently announced his intention of ending the $44 billion deal he had apparently struck with Twitter.

To put it simply, the richest man in the world is definitely not happy or pleased with the lack of information the social media platform provided about fake accounts as well as spam. According to the letter from Musk which was addressed to the Chief Legal Officer of Twitter, Vijaya Gadde, Musk will be terminating the merger because the platform appears to have several false and misleading representations- which Musk has apparently used as a major reference point for taking this decision. 

Elon Musk Might Not Be Buying Twitter After All

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Elon Musk had initially agreed to buy the crypto-friendly platform for social media for a sum of $54.20 per share, or about $44 billion, in cash. As it was reported back then, the Twitter board was pretty happy with this decision, as they unanimously voted in favor of the deal that would make Twitter a privately held company yet again.

However, the letter that was filed for the SEC went on to argue that the social media platform had not been very clear about quite a lot of crucial data. One of them included the process that Twitter utilized to audit the inclusion of spam and other fake accounts in monetizable daily active users- along with suspending after identifying such accounts. The social media giant has allegedly been quite tight-lipped about the daily measures of mDAU over the last couple of years. 

The letter from Elon Musk also claims that the social media platform has already breached a couple of sections of the merger agreement. The letter mentions that the social media company has been served a notice of its breach on the 6th of June, and any single cure period afforded to the social media company under this Agreement has now lapsed completely.

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