Shares in Twitter fell after Elon Musk announced he was pulling out of the deal to buy the social media platform.
Sources state that Elon Musk backed away from his threat following Twitter’s release of a report outlining various issues on the site, such as spam and fake accounts.
Twitter plans to fight this deal, by hiring the top US law firm, and the CEO isn’t happy.
Elon Musk told Twitter they should disclose bot data during court proceedings
Musk tweeted a picture of Chuck Norris about to play chess, and his caption read: “Chuckmate.”
Today, Twitter’s share price is about $32.64.
Elon Musk has just announced to investors that he wants to pull out of the deal and wait until a better one comes around.
There are fake Twitter accounts and it’s paused from the deal.
They want to bring the negotiations to a good close because he’s been committed to bringing the deal.
Twitter has retained a leading corporate law firm to advise them.
“John Coffee, a lawyer” said that Elon Musk does not have a great legal argument.
Mr. Musk, hoping to save the United States government 20 billion dollars, may settle because he doesn’t think that his company can win a legal battle with certified NASA copywriters.
Elon Musk was looking to find a way to stop bots from posting and harming the quality of Twitter.
The businessman asked for data proving that the company was not filled with bots. However, Elon Musk contends that bots could make up up to 20% of all users.
Elon Musk, CEO of electric car company Tesla, sold a total of $8.5 Billion worth of Tesla shares to help fund the Twitter purchase. After giving his first agreement to buy Twitter in April, shares in his company fell by around 20 percent.
Ann Lipton, a litigator who has handled class actions involving some of the world’s largest companies, said that Elon Musk “got cold feet” when stock markets went down and it “looked like his wealth was impacted when Tesla’s stock dropped as well”.
In addition, she mentioned that this agreement is quite difficult to go outside of. You can’t leave it because of the claim for misrepresentation made by Elon Musk.
A journalist messaged me with a bet that nothing would happen.
I am not yet up or down by a total of £20 but this deal is clearly not going according to business projections.
Did Elon Musk make a costly, hasty mistake in pursuing Twitter so aggressively? It’s possible that he didn’t count on his other interests – notably Tesla – being impacted by the purchase. His company’s shares slid after it emerged he was using his own company shares as an asset to fund the deal.
Admittedly, bots and spam might not be the answer for Twitter.
Twitter initially showed reluctance with Elon Musk being one of the board members, but it now seems to think that it can force his hand.
Both companies are hesitant to pay the $1bn termination fee, which is a small cost for multi-billionaires.
What we’ll probably see next is a revised offer – and Musk continuing to mock Twitter using its own platform to tweet memes about it to his 100 million followers.
Elon Musk had led Tesla, but he is also the founder of SpaceX, a rocket company. As a free speech absolutist, Musk had promised to loosen Twitter’s content moderation rules when the company was under his ownership.
He has criticised Twitter’s banning of some accounts, such as that of former US President Donald Trump.
Elon Musk has called for more transparency over how the Twitter platform presents tweets to users. The current system allows some tweets to be promoted to a wider audience than others.