Elon Musk wants to terminate his agreement to buy Twitter

Elon Musk wants to terminate his agreement to buy Twitter

  • Apple
  • July 8, 2022
  • No Comment
  • 55
  • 6 minutes read


It’s been a wild few months for Twitter, and today, a presentation to the SEC has indicated that Elon Musk wants to terminate his deal to buy Twitter for more than $ 40 billion.

The SEC filing details some complaints Elon Musk and his buying partners have with the information Twitter provides them.

The biggest concern seems to be the prevalence of spam / bot accounts, something Elon Musk has talked about a lot since he announced his intentions to buy Twitter.

“Mr. Musk and his financial advisors at Morgan Stanley have been soliciting critical information on Twitter since May 9, 2022, and repeatedly since then, about the relationship between the mDAU figures released by Twitter and the prevalence of fake or spam accounts on the network.

The record says Musk has repeatedly asked for information about these accounts, and it appears Twitter has not given satisfactory answers.

“Over the past month, Mr. Musk has been clear that he sees Twitter’s lack of response as a material breach of the merger agreement that entitles him to terminate the merger agreement if it is not resolved.”

Spam data and bot accounts are not the only information Musk has been looking for; the SEC filing also mentions over the past two months that Musk has been looking for “materials related to Twitter’s financial situation.”

“Mr. Musk is entitled, in accordance with section 6.4 of the Merger Agreement, to” all information relating to the business … of the Company … for any reasonable commercial purpose related to the performance of transactions “and under section 6.11 of the Merger Agreement, to information” reasonably requested “in connection with its efforts to secure the financing of the debt necessary to complete the transaction. To this end, Mr. Musk request a variety of board materials on June 17, including a fund financial model for 2022, a budget for 2022, an updated draft plan or budget, and a working copy of the underlying Goldman Sachs valuation model in its fairness opinion. Twitter has only provided a pdf copy of Goldman Sachs’ final presentation to the Board. “

Learn more about this story as it unfolds!





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