Elon Musk Threatens To Walk Away Again From Twitter Deal Over Alleged “Breach” of Agreement as Wealth Drops

Elon Musk Threatens To Walk Away Again From Twitter Deal Over Alleged “Breach” of Agreement as Wealth Drops

  • Elon Musk seems to be unhappy with how the twitter agreement is going and could be looking to walk away
  • With so much fanfare, Musk had announced he will be paying $44 billion to takeover Twitter, but the deal has been marred with several issues
  • In its latest complaint, Musk is unhappy that Twitter management was not truthful about the number of users

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Once again, Elon Musk has threatened to walk away from Twitter's deal as he believes Twitter Inc. is breaching their acquisition deal by not providing information about spam and fake accounts as he has demanded.

Musk made his intention known as he filed in an amended securities and exchange today, Monday 6 June.

According to Musk Twitter is “actively resisting and thwarting his information rights” by refusing to disclose the information.

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Elon Musk, Twitter
Elon Musk, Tesla CEO Credit: Photo by Patrick Pleul
Source: UGC

Last month, Musk said he wouldn’t proceed with his $44 billion takeovers of Twitter unless the social media giant can prove bots make up fewer than 5% of its users, Nairametrics reports.

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However, Twitter Chief Executive Officer, Parag Agrawal argued that the number of fake accounts is less than 5% when measuring daily users.

Agrawal's submission tallies with Twitter's quarterly financial report.

However, the Tesla CEO said he doesn’t agree with Twitter’s assessment. He made it clear in the amended security filings.

Twitter’s latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written materials or verbal explanations, is almost the same as refusing Mr. Musk’s data requests.

According to the filing.

“Twitter’s effort to characterize it otherwise is merely an attempt to obfuscate and confuse the issue. Mr. Musk has made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis. The data he has requested is necessary to do so.”

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Musk could be serious this time

While this isn't the first time Musk has formally threatened to walk away from a deal by changing the filing with the Securities and Exchange Commission, this time he could be serious.

Musk is the firm's largest individual shareholder and has a significant investment in the corporation, but the merger is not expected to be completed anytime soon.

Musk wealth drops again

Data from Bloomberg on Monday shows that Elon Musk lost a whopping $16.7 billion(N6.93tn) in the last 24 hours and he is now worth $211 billion.

Since the start of January to date, Elon Musk has lost a total of $59.5 billion.

Fans beg Elon Musk for Twitter job

Meanwhile, some of Elon Musk’s fans begged him for Twitter jobs on the platform, although the billionaire’s deal is months away from being finalized.

Musk’s followers are hoping that there will be a lot of reshuffles or shake-ups when the deal is finally consummated, so they taking their shots.

One follower wrote on Twitter asking the richest man in the world to hire him as Vice President of Product, Nikita Bier who co-founded a positivity-focused app said.

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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