“The $44 billion deal to buy Twitter is over,” Elon Musk told US authorities

Elon Musk is ending his $44 billion deal to buy Twitter, according to a filing by the billionaire filed with the US Securities and Exchange Commission yesterday.

usk’s attorneys sent a letter to Twitter saying he would “terminate their merger agreement,” the filing says.

But legal experts say Musk can’t just walk away from the deal. Its April agreement to buy the company included a commitment to go ahead with the acquisition unless there was a major change in the deal, and legal experts say nothing happened to reach that threshold.

Musk has previously threatened to nix the deal if Twitter doesn’t give him more data to conduct its own analysis of how many spam bots it has, while Twitter has said it can’t reveal any personal information about its users – such as their names, email and/or IP addresses – which it uses to determine its own bot numbers.

Musk and Twitter did not immediately respond to requests for comment.

It’s unclear what will happen next, although experts said a major lawsuit was likely if Musk tried to walk away. In a June statement, the company said, “We intend to complete the transaction and enforce the merger agreement at the agreed price and terms.” Even if Twitter accepts his argument, Musk will likely have to pay a $1 billion breakup fee.

In the letter to Twitter, Musk’s attorneys accused Twitter of “omitting or denying” information that would help Musk determine the true number of bots or spam accounts on the site.

“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has refused them for seemingly unjustified reasons, and sometimes it has claimed to do so while providing Mr. Musk with incomplete or unusable information,” the letter reads.

Musk rocked the social media world in April by agreeing to buy Twitter for $44 billion. He assembled a group of co-investors and used his personal wealth to obtain the debt needed to close the deal.

But shortly thereafter, a global sell-off in tech stocks eroded Musk’s net worth, making his $54-per-share purchase price look like Twitter overvaluation.

Twitter’s share price was around $37 yesterday.

©Washington Post

https://www.independent.ie/world-news/north-america/44bn-deal-to-buy-twitter-is-off-elon-musk-tells-us-authorities-41826528.html “The $44 billion deal to buy Twitter is over,” Elon Musk told US authorities

Fry Electronics Team

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