304 North Cardinal St.
Dorchester Center, MA 02124
Elon Musk’s $ 44 billion Twitter account is about to collapse – after Tesla CEO sent a letter to the Twitter board saying he was finishing it
Elon Musk has announced he will abandon his $ 44 billion bid to buy Twitter, leaving the deal on the verge of collapse. The CEO of Tesla sent a letter to the Twitter board on Friday saying it would cut off purchases.
But Twitter does not accept Mr Musk’s announcement. The chairman of the Twitter board, Bret Taylor, wrote on Twitter in response that the board “is committed to closing down the transaction and the terms agreed upon by Mr. We hope to succeed in the Delaware Court.”
Twitter could have demanded a $ 1 billion split that Mr Musk agreed to pay under these circumstances. Instead, it looks ready to fight to end the agreement, which has been approved by the company board and the chief executive of Parag Agrawal has emphasized that he wants to end it.
The possible disclosure of the agreement is just the latest turn of the proverb between the richest man in the world and one of the most influential social media platforms. A lot of the game was played on Twitter, with Mr Musk – who has more than 100 million followers – complaining that the company was failing to fulfill its role as a platform for free speech.
On Friday, Twitter shares fell 5% to $ 36.81, less than the $ 54.20 Mr Musk had promised to pay. Tesla shares, on the other hand, have risen 2.5% to $ 752.29.
Mr Musk’s lawyer Mike Ringler wrote in a letter to Twitter on Friday that for about two months, Mr.
“Twitter has failed or refused to provide this information. Twitter has at times ignored Mr. It also said the details were important to Twitter’s business and financial performance, and needed to end the merger agreement.
“This is a disastrous situation for Twitter and its board,” Wedbush analyst Dan Ives wrote Friday in a letter to investors. “From the beginning, this has always been a challenge to follow Twitter at a cost of $ 44 billion for Mr. Climb back against the wall and many on the Street scratch their heads next. ”
On Thursday, Twitter sought to elaborate on how it counts spam accounts in a forum with the media and company executives. Twitter has said it removes one million spam accounts a day. spam accounts represent less than 5% of the active user base per quarter. To calculate the number of malicious spam accounts, Twitter said it was updating “thousands of accounts” randomly taken, using public and private data such as IP addresses, phone numbers, geolocation and account performance, to detect that the account is real.
Last month, Twitter gave Mr. Musk has access to its “firehose” of raw data on hundreds of millions of tweets every day, according to several reports at the time, although the company or Mr. Private data, which is not publicly available so there is no “firehose” data provided by Mr. Musk, includes IP addresses, phone numbers and location. Twitter said such private data helps to avoid incorrectly identifying real accounts as spam.
Ringler also alleges that Twitter violated the agreement by firing its revenue leader and chief consumer manager, and announcing the demolition of one-third of its talent acquisition team. The sales agreement, he wrote, requires Twitter to “seek and obtain approval” if it deviates from conducting normal business. Twitter was required to “significantly preserve parts of its current business organization,” the letter said.
Mr Musk’s flirtations with Twitter purchase first appeared in late March. It was then that Twitter claimed to have contacted its board members – including its founder Jack Dorsey – and told them he was buying company shares and was interested in joining the board, taking Twitter secretly or starting rivals. Then, on April 4, he revealed to the governing body that he had become the company’s chief shareholder after acquiring a 9% net worth of $ 3 billion.
Initially, Twitter provided Mr. Musk seat on its board. But six days later, Mr. Agrawal wrote on Twitter that Mr. Musk will not join the board after all. His request to buy the company met shortly thereafter.
Mr. Musk had agreed to buy Twitter for $ 54.20 per share, including a marijuana index “420” in his offer price. He sold an estimated $ 8.5 billion worth of Tesla to finance the purchase, then strengthened his $ 7 billion bond with a group of various investors including Silicon Valley big hiters like Oracle founder Larry Ellison.
Inside Twitter, a presentation by Mr. Musk was confronted with a deteriorating and deteriorating behavior, especially after Mr Musk publicly criticized one of Twitter’s top lawyers involved in content rating decisions.
As Twitter executives prepared for the deal to go ahead, the company imposed hiring restrictions, suspended spending at discretion and fired two top executives. The San Francisco company was also laying off workers, most recently being part of its skills acquisition team.