August 10, 2022

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Elon Musk Backs Out of Twitter Acquisition

Twitter’s headline lost 4.85% in the Wall Street session after an article The Washington Post Transactions fell more than 6% after markets closed, signaling that the takeover plan was under threat.

Tesla’s boss threatened to halt the acquisition deal until the social network proved that the social network represented less than 5% of users viewing ads on its site, Twitter confirmed in recent weeks.

However, the multi-billionaire and his team believe that the social network is a lie, which is harmful to the company’s performance and, therefore, Twitter’s rating.

Last month, Twitter gave Elon Musk access to a trove of raw data on hundreds of millions of daily tweets.

According to the world’s richest man, the company provided incomplete or unusable data and appeared to count suspended accounts in its user count, so it knew it was fake.

Elon Musk’s lawyers cite recent layoffs of Twitter employees and a hiring freeze as reasons.

For weeks, experts have been wondering whether Elon Musk wants to withdraw his offer or revise the acquisition price downwards.

By terminating his engagement, the businessman exposes himself to legal action.

Also, Brett Taylor, Chairman of Twitter’s Board of Directors, pointed out on Twitter that the social network Mr. Musk has agreed to complete the transaction at an agreed-upon price and terms, and plans to sue him to enforce the deal..

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Both parties have pledged to pay severance payments of up to $1 billion under certain circumstances.

It’s a bad situation for Twitter and its management team, as the company will now have to face Musk in a lengthy court battle to save the deal or at least recover $1 billion.React analyst Dan Ives.

As for analyst Carolina Milanesi, she thinks Elon Musk has compiled a list. As many reasons as possible Avoid payment of penalties as provided in the purchase agreement.

Although the social network has emerged vulnerable from several misadventures in recent months, A forced acquisition of Twitter would be worse […] They end up with an owner who doesn’t want the business [qui a] Full of hatredShe thinks.

On April 25, Elon Musk appears to have won his race despite Twitter’s attempts to push him away. The entrepreneur struck a deal with the group’s board of directors to buy the social network at a price of $54.20 per share.

Since then, Twitter’s title has lost more than a quarter of its value. The stock ended the Friday session down 5.1% at US$36.81.

Most stocks have had a rough year on the stock market: The New York Stock Exchange Index, on which Twitter is listed, has fallen 15% since the start of 2022.