Elon Musk Threatens to End Deal With Twitter

[mystery-ak]

Elon Musk Threatens to End Deal With Twitter
 Martin Walsh June 6, 2022

Tesla CEO Elon Musk is threatening to exercise his “right not to consummate” his acquisition of Twitter and a “right to terminate the merger agreement.”

In a letter from his lawyers to the Twitter general counsel Vijaya Gadde, Musk accused Twitter of “resisting and thwarting” his right to information about fake accounts on the platform, calling it a “clear material breach” of the terms of their merger agreement.

“Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” the letter, signed by Skadden attorney Mike Ringler, says.

“He said his team would do a random sampling to calculate the number of fake accounts, but Twitter’s CEO later explained that nonpublic information would be necessary to get an accurate count. Twitter executives told staff there’s ‘no such thing’ as putting the deal on hold as Musk claimed,” CNBC reported.

“In Monday’s letter, Musk’s lawyer wrote that the merger agreement requires Twitter to provide the data Musk requested and disputed the company’s alleged claim that it is only required to provide information for the limited purpose of helping to close the transaction,” the report added.

“To the contrary, Mr. Musk is entitled to seek, and Twitter is obligated to provide, information and data for, inter alia, ‘any reasonable business purpose related to the consummation of the transaction,’” the letter says.

more
https://conservativebrief.com/elon-7-63520/

[catfish1957]

TWTR down 4% today on this.  Just can't wait to see equity value if and when the SEC starts handing out subpeonas to Dorsey, et. al for financial dislosure falsification. 

Musk might get this for dimes on the dollar if he plays his cards right.

[Free Vulcan]

TWTR down 4% today on this.  Just can't wait to see equity value if and when the SEC starts handing out subpeonas to Dorsey, et. al for financial dislosure falsification. 

Musk might get this for dimes on the dollar if he plays his cards right.

That's what I'm hoping. Let Twitter collapse under it's own weight, leave the woke leftist dingleberries demoralized and dejected, then pick it up for a song.

[Cyber Liberty]

Musk is correct on this.  Twitter represented itself as a 95% non-bot marketplace of human users, and is refusing to provide the data they have to support or refute their claim.  If the SEC would look at this honestly they would be the ones applying the brakes.

I think it's obvious how getting caught in this large of a fraud would force the stock and purchase price down.  Oh, as a bonus it will prove to all that the users really are considered a tangible product to be packaged and sold.  Some folks still don't believe that.

[Kamaji]

Musk is correct on this.  Twitter represented itself as a 95% non-bot marketplace of human users, and is refusing to provide the data they have to support or refute their claim.  If the SEC would look at this honestly they would be the ones applying the brakes.

I think it's obvious how getting caught in this large of a fraud would force the stock and purchase price down.  Oh, as a bonus it will prove to all that the users really are considered a tangible product to be packaged and sold.  Some folks still don't believe that.

The fact that the SEC hasn't opened an investigation says all that needs saying about the politicization/weaponization of the SEC.

[Elderberry]

Texas attorney general opens investigation into Twitter bots

Washington Examiner by Abigail Adcox 6/6/2022

https://www.washingtonexaminer.com/news/texas-attorney-general-opens-investigation-into-twitter-bots

Texas Attorney General Ken Paxton opened an investigation into whether Twitter is falsely reporting the number of bot accounts on the platform.

The inquiry will review whether Twitter violated the Texas Deceptive Trade Practices Act by misreporting the number of bot accounts, those that are automated and nonhuman, versus real users, the Republican official announced after Tesla CEO Elon Musk threatened to pull out of his deal to buy Twitter over similar concerns.

"Texans rely on Twitter’s public statements that nearly all its users are real people. It matters not only for regular Twitter users, but also Texas businesses and advertisers who use Twitter for their livelihoods,” Paxton said in a press release Monday. “If Twitter is misrepresenting how many accounts are fake to drive up their revenue, I have a duty to protect Texans.”

More at link.

[DB]

Texas attorney general opens investigation into Twitter bots

Washington Examiner by Abigail Adcox 6/6/2022

https://www.washingtonexaminer.com/news/texas-attorney-general-opens-investigation-into-twitter-bots

Texas Attorney General Ken Paxton opened an investigation into whether Twitter is falsely reporting the number of bot accounts on the platform.

The inquiry will review whether Twitter violated the Texas Deceptive Trade Practices Act by misreporting the number of bot accounts, those that are automated and nonhuman, versus real users, the Republican official announced after Tesla CEO Elon Musk threatened to pull out of his deal to buy Twitter over similar concerns.

"Texans rely on Twitter’s public statements that nearly all its users are real people. It matters not only for regular Twitter users, but also Texas businesses and advertisers who use Twitter for their livelihoods,” Paxton said in a press release Monday. “If Twitter is misrepresenting how many accounts are fake to drive up their revenue, I have a duty to protect Texans.”

More at link.

Well that could get interesting...