According to three unnamed individuals who informed the Washington Post that the billionaire’s team has “stopped engaged in some negotiations regarding finance” for the accord, Elon Musk‘s $44 billion bid to purchase Twitter is “at risk.” Musk agreed to a $44 billion agreement in April, and the two parties have been trying to finalize it ever since.
Twitter has given Musk access to its “firehose,” or stream of tweets after he asked for details on how many accounts are bots. It has kept on providing him with further details. The contract was at risk, according to a Thursday report from The Washington Post, and Musk’s team was “expected to take potentially dramatic action.”
Elon Musk Decided To Buy Twitter Early This Year
The accusations made in the report surprised Twitter and its advisors since they did not believe the transaction was in any more danger than it had been in previous months. An inquiry for a response from Musk was not answered. Reiterating its intention “to consummate the deal and enforce the merger agreement at the agreed price and parameters,” they said in a statement.
There are a number of “dramatic” steps Musk might take, but there are only really two that are relevant to the deal: He might sue Twitter or issue a letter to them stating that the agreement is being terminated.
Those two events would most usually occur concurrently, but not always. Since Twitter has made it known that about 5% of its users are bots since becoming public, Musk has no legitimate reason to try to scuttle the agreement. But he may try to argue that this information is purposefully deceptive, which would be extremely difficult to prove in court. Twitter may then file a countersuit. The social media firm thinks that the terms of the agreement are on its side and that Musk would have an uphill struggle.
