In a letter released by the U.S. Securities and Exchange Commission, lawyers for Tesla and the SpaceX boss assert that Twitter is not honoring its obligations. The social network immediately announced legal action to “enforce the agreement.”
Elon Musk, CEO of Tesla and SpaceX, said Twitter On Friday, July 8, he broke the deal with the board of directors to buy the social network due to information “False and Wrong” in business.
In a letter released by the U.S. Securities and Exchange Commission, his lawyers asserted that Twitter did not honor the commitments made in the agreement. Twitter has repeatedly said in recent weeks that the number of fake accounts on its site is less than 5%. The multi-billionaire and his team believe the network is a lie, and that it affects the credibility of his business and therefore the value of the company.
For weeks, experts have been puzzled Elon Musk It tried to withdraw its offer or negotiate a lower price again. By completing his commitment to buy Twitter, the entrepreneur is exposing himself to substantial legal action. Both parties have pledged to pay severance payments of up to $1 billion under certain circumstances. The Twitter chief immediately said the company would take legal action “Enforce the Agreement” Recovery. “The Twitter team is committed to completing the transaction at the price and terms agreed upon with Mr. Musk.”Brett Taylor confirmed in a tweet that they are “faith” Chances of winning in court.
“This is a bad situation for Twitter and its team, as the company will now have to face Musk in a lengthy court battle to save the deal and/or recover at least $1 billion.”, reaction analyst Dan Ives. In the letter, Elon Musk’s attorneys discuss Twitter’s recent layoffs and hiring freeze of employees. They clearly have “List as many reasons as possible to avoid paying” penalty, analyst Carolina Milanesi commented for AFP.
On April 25, Elon Musk appeared to have won his race, despite Twitter’s initial efforts to push him away. After a gradual and prudent increase in the group’s capital, it entered into a definitive agreement with the group’s CA to buy the social network at a price of $54.20 per share, or a total of $44 billion. Since then, Twitter’s title has lost more than a quarter of its value. Tesla’s stock also fell nearly 25% during that time.
On Thursday, CFRA Research analyst Angelo Gino noted that possibility in a note “Embarrassment” According to the expert, the price of Elon Musk was initially proposed “laughable”. The South African-born leader secured the backing of a number of major wealth and investment firms to help him reach the total amount and reduce the share he had to borrow from banks. These loans worried the market because they were loans backed by Tesla bonds.
But beyond the financial considerations, the events of recent weeks show the gulf between the businessman, a Texan by adoption, and the San Francisco-based company. Elon Musk advocates less stringent content controls and the recall of people who have been banned for violating the rules, such as former President Donald Trump. His view is at odds with many Twitter employees, unions and elected Democrats, who instead are calling on the social network to better fight hate speech, harassment and misinformation in the interest of users and democracy. With a Twitter following of over 100 million people, the fiery entrepreneur has multiplied criticism and attacks against the social network, going as far as publicly mocking company executives and sending a flower-shaped emoji to the platform’s boss. , Barak Aggarwal, during exchanges about spam.
“Twitter is in worse shape than when it all started,” notes Carolina Milanesi. “Executives have left and nothing is moving forward… but the worst is if Twitter goes through with the acquisitionshe adds. “They end up with an owner who doesn’t like the business and is full of resentment.”
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