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Elon Musk Rejects the Twitter Takeover process

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Recently Elon Musk is not buying the twitter , As per Elon the reason behind the Rejection of deal that

Twitter did not provide enough information to Elon Musk regarding spam bots on Twitter, as they had agreed that spam data will be provided to elon as per data the deal price was $44 million.

Elon Musk, CEO of SpaceX and Tesla, has pulled out from his deal to buy Twitter for as Musk requested information multiple times from the platform, but was never satisfied with the answers.

As per Elon Company

 “Mr. Musk is terminating the Merger Agreement because 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, and is likely to suffer a Company Material Adverse Effect (as that term is defined in the Merger Agreement).”

They Further Stated That : Mr. Musk sought the same information in letters dated June 6, 2022, June 17, 2022, and June 29, 2022. In each of these letters, Mr. Musk referenced his information rights under as per the Merger Agreement. Twitter has thus been on notice of the information sought by Mr. Musk—and the contractual bases for these requests—for two months. For the past month, Mr. Musk has been clear that he views Twitter’s non-responsiveness as a material breach of the Merger Agreement giving him the right to terminate the Merger Agreement if uncured. 

and Same action was taken by Elon .

Some Bullet Point of The Deal Rejection are as follows

  • Twitter was required to provide all the information necessary for business purposes in relation to the transaction. He specifically sought information about the presence of spam bots on the social media platform and accounts.
  • Musk placed the deal on hold after Twitter revealed that 5% of accounts were fake. He said that the Twitter deal was temporarily put on hold while details are provided to support the calculation that spam/fake accounts actually represent less than 5%.
  • According to the filing, the platform provided information “with strings attached, use limitations, or other artificial formatting features which have rendered some of it minimally useful for Mr. Musk and his advisers.”
  • However, the termination might not go smoothly. Twitter could force the billionaire to sign the original merger agreement.
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