Elon seeks to terminate Twitter takeover deal

by WarriorForum.com Administrator
8 replies
A new article on Social Media Today reports that Elon Musk has (unsurprising, IMO) filed filed a motion with the SEC to terminate his $44 billion takeover of Twitter, based on Twitter's failure to provide accurate information on the number of fake accounts on its platform.

A letter filed on behalf of Musk and his investment partners at Morgan Stanley says that Musk is seeking to cancel the acquisition due to a 'material breach of multiple provisions' of the original merger agreement. Accordingly:

'[Twitter] appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect (as that term is defined in the Merger Agreement)."
According to Elon's team, despite repeated requests for qualifying information, Twitter had failed to provide them with the data required to make an accurate and true assessment of the number of fake accounts on its platform.

"While Section 6.4 of the Merger Agreement requires Twitter to provide Mr. Musk and his advisors all data and information that Mr. Musk requests "for any reasonable business purpose related to the consummation of the transaction," Twitter has not complied with its contractual obligations."
Musk's team says that it has been seeking more information from Twitter for nearly two months, with Twitter only providing limited access to the required data, in violation of the terms.

"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."
They say Twitter has failed to provide them with information on:
  • Information related to Twitter's process for auditing the inclusion of spam and fake accounts in mDAU
  • Information related to Twitter's process for identifying and suspending spam and fake accounts
  • Daily measures of mDAU for the past eight (8) quarters
  • Board materials related to Twitter's mDAU calculations
  • Materials related to Twitter's financial condition

Because Twitter has failed to comply with these requests within a reasonable time period, that, Musk's team says, is a violation of the deal's terms, and is therefore reason enough to cancel the agreement.

Now obviously there will be a standoff between Elon and Twitter, which will force the latter to provide a detailed explanation of such to the SEC.

Chime in.
#deal #elon #seeks #takeover #terminate #twitter
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  • Profile picture of the author Kay King
    We'll see how it ends but anyone who believes only 5% of Twitter accts are fake or bots...should be buying beach front property in Nebraska.

    It's a win win for Musk and lose-lose for Twitter. In a court battle, seems likely that proving the 'fake acct' numbers would be key to any claims. Yet to force the sale, seems Twitter will have to go to court.

    Musk avoids over paying for a falsely represented online property - or ends up buying it for less. Twitter value is likely to be damaged by having the 'numbers' made public.

    As one of the few people in the country (it seems) who has never and will never have a Twitter acct...I find the story interesting.
    Saving one dog will not change the world - but the world changes forever for that one dog.
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  • It feels like this is all orchestrated by Musk to get the most amount of attention. Either as a way to divert attention from something else or to feed his ego.

    Because even though buying Twitter is a big deal, it's getting way too much press than it deserves. Most stories like this only get a few days of press coverage at most. The media has been talking about this for months now. When will it end!!?
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  • Profile picture of the author socialmediaboost
    So Elon claims that Twitter did not provide the requested information regarding the percentage of accounts that are bots. As a result he wants to cancel the deal. Twitter still refuses to provide this information. I think that Elon has the right too back out if they are withholding information. What do you think? Is this a deal dead? If so, I think Twitter is really in trouble.
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  • Profile picture of the author Kay King
    Most stories like this only get a few days of press coverage at most.

    Surely you just - I'm happy to see something on the news that is NOT about Amber Heard, etc.

    If this was orchestrated - it was brilliant. I think I'll just watch the story unfold and see where it goes.
    Saving one dog will not change the world - but the world changes forever for that one dog.
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  • Profile picture of the author AngeliaJohn
    Is Twitter still in trouble
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