For a transient recap, the terms of the deal involving Musk and Twitter had been as follows. On April 25th it was introduced the events had struck a deal that would permit Musk to individual 100 % of Twitter. All he had to do was pay out $54.20 for each and every share of Twitter inventory, which totaled all over $44 billion. Elon lined up financing for the deal, and the board accredited it. Subsequent, Elon threw a wrench into the will work.
For some rationale, Elon came up with the plan that 20 percent of Twitter accounts have been bots. This brought on him to request the Twitter CEO to verify its bot count. This brought on Twitter’s CEO to explain in element how it handles bots on its system. He posted a lengthy web site article about the thorny problem, and also a tweet thread about confronting spam. This did not satisfy Elon, as he mentioned the CEO could not demonstrate that it was 5 per cent, as the organization had previously said. Hence, the deal was off, in accordance to Elon. “My provide was dependent on Twitter’s SEC filings staying precise. Yesterday, Twitter’s CEO publicly refused to clearly show proof of <5%. This deal cannot move forward until he does,” he tweeted.
This caused the company’s board of directors to respond. In a proxy statement filed with the SEC, the board says it’s planning on moving ahead with the deal despite his concerns. It bluntly stated, “Twitter is committed to completing the transaction on the agreed price and terms as promptly as practicable.” CNN obtained a statement from Twitter’s board saying it’s time for Elon to get out his check book. “The Board and Mr. Musk agreed to a transaction at $54.20 per share. We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement,” read the statement. This seems like a blatant legal threat to Elon if he tries to walk away from the deal as-written.
Industry analysts have opined that Musk’s belly aching about bots is an attempt by him to lower the purchase price. Although Musk’s $54.20 per share offer was generous in April, it’s extremely generous now as the stock has fallen quite a bit since the heady days of early April when Musk purchased nine percent of Twitter’s stock. Whether or not Elon will go through with the deal in its current form remains to be seen. For now the ball is in his court.