Purchase of Twitter – Billionaire Elon Musk accuses Twitter of withholding important information about the number of fake and spam profiles on the platform. He had planned to buy the social medium for 44 billion dollars (about 41 billion euros), but now threatens to withdraw. According to his lawyers, that is still possible, but Twitter wants to continue the deal.
The acquisition has been paused for some time. That has to do with the number of fake and spam accounts that Twitter has communicated.
According to the company, less than 5 percent of accounts are fake or spam, but Musk wants the company to show how it got that percentage. He himself thinks that at least 20 percent of the users are fake.
Twitter refuses to hand over these figures to him. Musk takes this as an attempt to thwart him and cover up the issue. According to the entrepreneur, the acquisition agreement states that Twitter must provide that data. If the platform does not do so, he may still withdraw, according to his lawyers.
In order to fully withdraw from the deal, Musk must have a legally valid reason for doing so. For example, that he has discovered fraud or if it appears that he has proceeded to purchase on the basis of incorrect information.
Twitter previously said that there is no legal basis at all to stop the acquisition. The platform did not give specific details about this, but probably bases that ruling on the agreement that was concluded between the two parties.
The company reiterated in a statement Monday that it plans to complete the acquisition at the agreed price of $44 billion. In addition, the company says it has shared information with Musk and that it will continue to do so.
Pay less for acquisition
The question is how serious the threat of the richest person on earth to call off the deal is. Some analysts think that the entrepreneur wants to put pressure in this way to force a lower acquisition price.
In addition, it also seems that Musk is suddenly worried about the number of spam and fake accounts on the platform. He has complained about this more often in the past. In the end, he decided to do something about it himself by buying Twitter.
According to the well-known Bloomberg columnist Matt Levine, it is therefore more likely that Musk simply wants to pay less for Twitter. The company is currently worth about 30 billion dollars on the stock exchange. That’s $14 billion less than the billionaire’s takeover bid.
Purchase twitter stock
If Musk does abandon the bid at the last minute, Twitter could sue him for billions of dollars. The company will then presumably try to show that he stopped the deal because he felt he had to pay too much for the platform.
In addition, Musk must also pay a so-called cancellation fee of 1 billion dollars if he still abandons the deal.
Reversing the purchase of Twitter
“purchase of Twitter”