Elon Musk’s deal to buy Twitter is in peril
Elon Musk’s deal to buy Twitter is in serious jeopardy, three people familiar with the matter say, as Musk’s camp concluded that Twitter’s figures on spam accounts are not verifiable.
Talks with investors have cooled in recent weeks as Musk’s camp has raised doubts about the recent data “fire hose” — a trove of data sold to corporate customers — they received from Twitter. Musk’s team’s doubts about the spam figures signal they believe they do not have enough information to evaluate Twitter’s prospects as a business, the people said.
But the terms of the deal mean it wouldn’t be easy for Musk to walk away. Musk has agreed to complete it unless something major happens to Twitter’s business, and legal experts doubt the bot issue would qualify. Twitter, which initially fought Musk’s takeover bid, would be a weaker company if the deal falls apart than when Musk first bought a stake, and experts expect Twitter to fight to get it done. Twitter itself has said it intends to complete the deal. Even if Musk convinces a judge to let him walk away, he could still be on the hook for the deal’s $1 billion breakup fee. $Tesla(TSLA.US$ $Twitter (Delisted)(TWTR.US$
Talks with investors have cooled in recent weeks as Musk’s camp has raised doubts about the recent data “fire hose” — a trove of data sold to corporate customers — they received from Twitter. Musk’s team’s doubts about the spam figures signal they believe they do not have enough information to evaluate Twitter’s prospects as a business, the people said.
But the terms of the deal mean it wouldn’t be easy for Musk to walk away. Musk has agreed to complete it unless something major happens to Twitter’s business, and legal experts doubt the bot issue would qualify. Twitter, which initially fought Musk’s takeover bid, would be a weaker company if the deal falls apart than when Musk first bought a stake, and experts expect Twitter to fight to get it done. Twitter itself has said it intends to complete the deal. Even if Musk convinces a judge to let him walk away, he could still be on the hook for the deal’s $1 billion breakup fee. $Tesla(TSLA.US$ $Twitter (Delisted)(TWTR.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Jay-Jay : Twitter will also be fined $1 billion for breach of agreement, misinformation on agreement
WealthGenerator : If really unsuitable, pay a billion ( which is not a lot for Elon) and walk away. Else, buy at a good discount and turn it into another more superior “WeChat/ WePay” IMHO, Twitter will thrive under Tesla.
Jay-Jay WealthGenerator: elon will sue twitter for 1b and win because of misinformation on agreement
Jay-Jay Jay-Jay: that could have been his plan the whole time ....who knows... he's a slickster for sure
Jay-Jay Jay-Jay: its hard for me to think as a business owner he wouldn't foresee this before offering to buy the company and structuring the agreement deal, and the break up
clause.
Ramzzi : If you look carefully, the difference between the past and present market is clear, what do you see? Documents that show proof of another matter. If I were Musk, I wouldn't entertain myself on Twitter. I can confidently say that there were 3 specific businesses that went global in an average of 2 years and enjoyed good financial and economic growth. Sometimes the weather doesn't change, it's the market changes that change the weather.
Carla LeeOP Jay-Jay:
Carla LeeOP WealthGenerator: he abandoned
Carla LeeOP Ramzzi: emmm