According to recent reports, Twitter has claimed that it did not violate any terms by paying the whistleblower of the $44million deal with Elon Musk. Read the entire article to learn more about this news piece.
About the letter to Twitter
There was a letter that was sent to Twitter by Elon Musk’s lawyers saying that the platform had violated the terms of the merger agreement and it should have asked for consent before paying approximately $7.75 million to the whistleblower named Peiter Zatko. The payment, which included $7 million for Zatko, “cannot be cured,” and Musk is, therefore “not required” to complete the merger, the letter said. A copy was filed with the U.S. Securities and Exchange Commission Twitter’s lawyers responded on Monday, saying Musk’s reasoning to back out of the deal is “invalid and wrongful”.
About Peiter Zatko
For people who don’t much about Peiter Zatko, he was the security head of Twitter until he was fired this year in the month of January. This person went on to make statements accusing the company of making false claims about its security plans and making false statements about its actions against hackers and spam accounts. Elon Musk made use of these statements made by Zatko in the trial which is going on between him and the social media company. “With the Musk camp now being allowed to include the Zatko claims in its testimony for Delaware, tomorrow’s hearing will be closely watched by the Street,” Wedbush analysts wrote in a note.
Twitter and Elon Musk deal
If you do not have any clue about the deal that was made between Elon Musk and Twitter, then this article is here to help you. So, in simple words, Elon Musk was to buy Twitter for $44million. It was a done deal until one day, Elon Musk canceled the deal saying that Twitter has lied to him about the status of their spam and bot accounts. After that, Twitter sued the billionaire and hence he is facing a lawsuit now. “Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement, appears to have made false and misleading representations upon which Musk relied when entering into the merger agreement, and is likely to suffer a Company Material Adverse Effect,” stated the filing. “The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk. We are confident we will prevail in the Delaware Court of Chancery,” Taylor said in his tweet.