The following report is from Reuters:
Elon Musk, the chief executive officer of Tesla (TSLA.O) and the world’s richest person, said on Friday he was terminating his $44 billion deal to buy Twitter (TWTR.N) because the social media company had failed to provide information about fake accounts.
Shares of Twitter were down 7% in extended trading. Musk had offered $54.20 per share in April.
Twitter’s chairman, Bret Taylor, said on the micro-blogging platform that the board planned to pursue legal action to enforce the merger agreement.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk…
He wrote
In a filing, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance.
Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.
The filing said
The announcement is another twist in a will-he-won’t-he saga after the world’s richest person clinched a $44 billion deal for Twitter in April but then put the buyout on hold until the social media company proved that spam bots account for less than 5% of its total users.
The terms of the deal require Musk to pay a $1 billion break-up fee if he does not complete the transaction.
Musk had threatened to halt the deal unless the company showed proof that spam and bot accounts were fewer than 5% of users who see advertising on the social media service.
The decision is likely to result in a long protracted legal tussle between the billionaire and the 16-year-old San Francisco-based company.
Twitter Fires Back
The following report is from Insider:
Twitter is vowing to sue Elon Musk in order to force a close of his deal to acquire the company.
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.
The company said in a press release.
Board chairman Bret Taylor, also the co-CEO of Salesforce, reiterated that statement on Twitter.
Executives have explained to employees during internal meetings and in public statements that it would “enforce” the contract in place with Musk if it had to, meaning heading to court if he attempted to back out. Many employees have been expecting this turn of events since at least June, after Musk first accused the company in a letter of “actively resisting” his information requests.
Such a lawsuit will take place in Chancery Court in Delaware, where Twitter is incorporated. Chancery Court frequently handles major business disputes, but Musk is facing a tough legal battle to get out of the agreement he signed, if it is even possible to do so.
Generally with these kinds of deals, once you’ve signed the contract, absent government intervention or an over-bidder, or some material adverse event between signing and closing, these deals will close.
Brian Quinn, associate professor at the Boston College Law School, said
He added that a claim of a material adverse event a “very hard legal claim to win” as Delaware courts have imposed a very high bar for what can be considered that type of event.
AUTHOR COMMENTARY
It’s more drama per usual. Musk is a scumbag who is absolutely not your friend, nor a friend to free speech, as proven in other WinePress reports. I would not be shocked if this becomes the next televised court drama that is blasted all over the airways to divert people’s attention.
Enter not into the path of the wicked, and go not in the way of evil men.
Proverbs 4:14
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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Of course he backed out! How many times must Libertarians disappoint for people to figure out that Libertarians don’t care about anything except drugs and lewdness?
Everything Libertarians do they do on a whim. Musk toyed with the idea of buying the most popular social media platform but now that the fun has fizzled out, he lost his interested.
This latest disappointment is yet another wake-up call that gullible Conservatives should answer and not put on hold like they have done with so many other wake-up calls. Divorce anything pertaining to Libertarianism or become irrelevant.