The title of Twitter, which lost 4.85% in the session on Wall Street after an article Washington Post suggesting the takeover project was under threat, after-hours transactions fell more than 6%.
Tesla’s boss had threatened to terminate the acquisition agreement unless the social network proved that fake accounts made up less than 5% of users who see ads on its platform, a number confirmed by Twitter in recent weeks.
However, the multi-billionaire and his team believe the social network is lying and that this is hurting the company’s performance and thus Twitter’s valuation.
Last month, Twitter granted Elon Musk access to a repository of raw data on hundreds of millions of daily tweets.
According to the world’s richest man, the company was providing incomplete or unusable data and it appeared that it had counted blocked accounts in its user count, which it therefore knew were fake.
Elon Musk’s lawyers also cite the recent dismissals of Twitter employees and the hiring freeze as reasons.
Experts have been wondering for weeks whether Elon Musk wanted to withdraw his offer or renegotiate the purchase price downwards.
By ending his engagement, the entrepreneur exposes himself to court proceedings.
In addition, Twitter CEO Bret Taylor stated on Twitter that the social network
Musk, et prévoit de le poursuivre en justice pour faire respecter l’accord”,”text”:”s’est engagé à conclure la transaction au prix et aux conditions convenus avec M.Musk, et prévoit de le poursuivre en justice pour faire respecter l’accord”}}”>agreed to complete the transaction at the price and terms agreed with Mr. Musk and plans to sue him to enforce the transaction.
Twitter’s board of directors is committed to completing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery.
—Bret Taylor (@btaylor) July 8, 2022
Both parties have agreed to pay up to $1 billion in severance, subject to certain circumstances.
It’s a bleak scenario for Twitter and its board of directors, as the company must now face Musk in a protracted court battle to salvage the deal or get at least $1 billion back.responded analyst Dan Ives.
As for analyst Carolina Milanesi, she believes Elon Musk has compiled a list of
as many reasons as possible to avoid paying the fine provided for in the purchase contract.
Even if the social network emerges weakened from the many adventures of the last few months,
the worst would be if Twitter forces the takeover […] You would end up with an owner who didn’t want the business and [qui a] full of resentmentShe thinks.
On April 25, Elon Musk appeared to have won his bet, despite attempts from Twitter to push him away. The entrepreneur had agreed with the group’s board of directors to buy the social network at a price of $54.20 per share.
Since then, the Twitter title has lost more than a quarter of its value. The stock closed at $36.81 on Friday, down 5.1%.
Most stocks are having a rough year in the stock market: The New York Stock Exchange index, on which Twitter is listed, has slipped 15% since the beginning of 2022.