Elon Musk created waves after announcing plans to acquire Twitter a while back. Twitter initially showed signs of not wanting to be acquired by Elon Musk, but now that he terminates the acquisition plan, they have threatened a lawsuit against him. Musk’s lawyer said that there had been multiple material breaches in the agreement, which has forced them to end this.
Elon Musk is not going to buy Twitter anymore
Elon Musk has over $100 million followers on Twitter, and this acquisition would have been fruitful for him and his company. Since Tesla doesn’t spend a single dime on marketing, Elon’s Twitter handle has been the primary way of marketing. They could have got a lot more flexibility if this deal went through. However, Elon’s lawyer claims that Twitter made false representations when Elon signed the merger agreement with them. Elon still hasn’t received the necessary data, which was under the contractual obligation.
One of the most pressing issues that Elon Musk has brought up with Twitter was the bots problem. While initially, it didn’t seem so big, Musk pointed out that bots could even represent more than 5% of the total users of Twitter. This is why he asked the social media platform to do an assessment of how many fake and spam accounts exist on Twitter.
However, the request was not fulfilled by Twitter. It has also ignored many of Musk’s other requests and sometimes plainly rejected them. So, Elon hasn’t received any solid information regarding his queries or doubts.
Problem with Twitter
The social media platform did share some data with Musk, but that also had a problem. The data could be used for limited things and also had artificial formatting features, which made it hardly useful to Elon. Another problem that the lawyer stated was that just after the deal was signed, they fired a lot of key employees from the organization and also laid off a lot of them. Three major executives have also left.
So, all this has forced Elon to end the deal. Initially, the termination fee was decided to be $1 billion, but now with so many issues highlighted by Musk’s lawyer, it could be a lot lower. Bret Taylor, a Twitter board member, threatened that they plan to enforce the merger agreement with legal action.
What are your thoughts as Elon Musk terminates the acquisition plan of Twitter? And do you think the allegations Musk pinned on Twitter are correct? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.