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https://www.npr.org/2022/07/08/ [login to see] /twitter-elon-musk-deal-jeopardy
Elon Musk wants to break off his agreement to buy Twitter.
In a letter to the company, filed Friday with the Securities and Exchange Commission, Musk accuses Twitter of making "false and misleading representations" about the prevalence of fake accounts on its platform. He says the company has not complied with its obligations to share data and information that he says he needs to evaluate its business.
"Sometimes Twitter has ignored Mr. Musk's requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information," Musk's lawyer, Mike Ringler, wrote.
Legal experts say this may not be sufficient grounds to break off the $44 billion deal without Musk being on the hook for a hefty fine. In response to Musk's letter, the chair of Twitter's board said it planned to sue.
"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery," said Bret Taylor in a tweet, referring to a Delaware court that handles corporate disputes.
Elon Musk wants to break off his agreement to buy Twitter.
In a letter to the company, filed Friday with the Securities and Exchange Commission, Musk accuses Twitter of making "false and misleading representations" about the prevalence of fake accounts on its platform. He says the company has not complied with its obligations to share data and information that he says he needs to evaluate its business.
"Sometimes Twitter has ignored Mr. Musk's requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information," Musk's lawyer, Mike Ringler, wrote.
Legal experts say this may not be sufficient grounds to break off the $44 billion deal without Musk being on the hook for a hefty fine. In response to Musk's letter, the chair of Twitter's board said it planned to sue.
"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery," said Bret Taylor in a tweet, referring to a Delaware court that handles corporate disputes.
Elon Musk says he won't buy Twitter
Posted from npr.org
Social Media
Business
Lawsuit
Posted 2 y ago
Responses: 1
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PO1 William "Chip" Nagel
..."Taking Musk to court could be even more damaging to Twitter at a time when uncertainty over the deal and what the billionaire's ownership might mean are weighing heavily on the company. Morale is already low and some employees are leaving. CEO Parag Agrawal has shaken up his executive ranks and announced a hiring freeze and spending cuts.
Going to court "doesn't bode well for the business prospects of your company, and it further adds uncertainty to the employee base," Zino said.
That's also a risk for Musk, Lipton said. "What if he has to buy the company and now he's kind of undermined it at the same time?"
Ultimately, she said, the billionaire's antics, however chaotic, appear to have a single goal: "I don't think he's committed to winning. I think he's committing to not spending $44 billion on Twitter."
..."Taking Musk to court could be even more damaging to Twitter at a time when uncertainty over the deal and what the billionaire's ownership might mean are weighing heavily on the company. Morale is already low and some employees are leaving. CEO Parag Agrawal has shaken up his executive ranks and announced a hiring freeze and spending cuts.
Going to court "doesn't bode well for the business prospects of your company, and it further adds uncertainty to the employee base," Zino said.
That's also a risk for Musk, Lipton said. "What if he has to buy the company and now he's kind of undermined it at the same time?"
Ultimately, she said, the billionaire's antics, however chaotic, appear to have a single goal: "I don't think he's committed to winning. I think he's committing to not spending $44 billion on Twitter."
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