The soap opera of Elon Musk, one of the most volatile characters in the business world, and Twitter, the social network that seeks where to hang on to get ahead economically speaking, had a new chapter this Monday with the threat of the founder of Tesla to break the purchase agreement, agreed at 44,000 million dollars.
Elon Musk has “the right not to consummate” the acquisition of Twitter and “the right to terminate the merger agreement”
This was expressed in a letter, in which he accuses the trill company of not complying with his request to give him the real numbers about spam and fake accounts or bots on this platform. Musk insisted that this social network has refused to provide this information, which he considers necessary to make his own assessment of the real situation.
The letter was sent by Mike Ringler, one of the lawyers for the also founder of the Space X space company, to Vijaya Gadde, general counsel of the social network. In that text, Ringler stressed that Musk has every right to know this data, in part so that he can facilitate the financing of the business.
While Musk had previously tweeted that he was keeping the deal on hold, this is the first time his legal team has suggested that the Twitter takeover pact is more than just a legally watertight deal.
This document insists that Musk has repeatedly required his approach, since last May 9, around a month after the purchase agreement, in order to weigh the agreed price based on real knowledge of the number of false accounts there are. among the supposed 229 million users.
According to this letter, Twitter has so far only offered details about the company’s methods to determine which are those false accounts (those that are bought and sold to fatten the social weight of certain users), and argued that this is equivalent “to reject your data requests”.
Due to this agreement, both Twitter and Tesla, the main supplier of Musk’s wealth and financing, have lost weight in the stock market as a result of that initial offer of $54.20 per share of the social network. This means that the Tesla boss is overpaying for the messaging company, with money that he will have a hard time finding.
For analysts, there is zero chance that Twitter will accept the claim that Musk has the right to break the deal. If that point is reached, everything points to a big legal mess. Compensation clauses were imposed in the pact if the agreement was broken. But many think Musk is looking for a legal loophole.
