Elon Musk has terminated his deal to buy Twitter
If Elon Musk has his way, the agreement between him and social media juggernaut Twitter is off. Musk sought to terminate the merger agreement between himself, his financial backers, and Twitter in a letter to Twitter’s legal team late Friday, claiming that Twitter was “in material breach of multiple provisions of that Agreement, 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 Agreement) and is likely to suffer a Company Material Adverse Effect (as defined in the Agreement)
Moreover, the letter was submitted to the SEC (opens in new tab). Three months after Musk tried to pay $44 billion to acquire the well-known social media network, interest has changed (opens in new tab). The quantity of spam or automated accounts on Twitter is a problem. Even while Twitter has stated that Musk’s estimate is incorrect, Musk thinks the platform is packed with them. They eventually consented to his request to view their data, but Musk insisted on an impartial examination. The letter continues that “Twitter has either omitted to do so or declined to do so. Twitter has occasionally ignored Mr. Musk’s demands, rejected them for apparent unreasonable reasons, and purported to cooperate while providing Mr. Musk with inaccurate or useless information.”
Musk had ambitious aspirations for Twitter, including making it more of a public forum, advancing the editable tweets feature (which Twitter is already working on), and being more receptive to free speech from all sides. He was banned from Twitter following the attacks on January 6th, so there were some worries he may invite former president Donald Trump back, but that was never proven. Musk had previously placed the contract on hold while he tried to learn more about the number of bots on the platform, but in recent weeks, he had become very silent about it and, notably, had not tweeted about trying to stop the deal.
Whether or whether the agreement is actually dead is still up in the air. Twitter or the shareholders, who might have approved the purchase as soon as next month, appear ready to suit Musk, and Musk could be on the line for millions of dollars. Musk has the financial means to pay up billions in fines. So get ready for a protracted battle in which Twitter and people using its platform might lose.