A deal is a deal. Twitter management told employees of the social network in an internal meeting that the $44 billion deal with billionaire Elon Musk was going according to plan, and that they would not renegotiate the agreed price of $54. $20 per share, reports Bloomberg on Thursday, May 19. On May 13, Elon Musk had indeed declared, via his Twitter account, that the takeover of the social network was suspended until he had more information on the question of “false accounts”, insinuating that the figures advanced by Twitter on the number of users were distorted by spam.
On May 15, he then explained during a conference that with this proportion of false accounts, the redemption price could be lowered, reports France Inter. Parag Agrawal, the chief executive of Twitter, then posted a long thread on his account on May 16, explaining the method used by the social network to count spam accounts. But far from resolving the situation, Elon Musk responded to the CEO with a poo emoji.
Elon Musk could hardly withdraw his offer
Vijaya Gadde, Twitter’s chief legal officer, dotted the i’s, telling employees the deal was not pending. Interestingly, responding to a question from one of the executives who asked if Twitter was going to try to force Elon Musk to go through with his offer and buy the social network, the social network’s chief legal officer replied that the boss of Tesla would have to do everything it could to ensure it was funded and that it was possible for the social network to enforce the terms of the deal in court. But the manager added that it was still rare to get that far, reports the economic information site.
According to CNBC, if Elon Musk gives up buying the platform, Twitter could, in theory, sue him for breach of contract. A buyer cannot simply withdraw their offer by paying a fee (in this case, it would amount to a billion dollars), unless certain external conditions apply, such as cases of fraud, or regulatory reasons. , according to the agreement reached between the billionaire and Twitter.
However, there is no external condition that could, for the moment, allow the boss of SpaceX to get out of this contract by paying a billion dollars. Breach of contract could actually cost the richest man in the world far more. According to a lawyer quoted by CNBC, the social network’s declining market capitalization is not a valid reason for Musk to withdraw from the agreement.
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Following the announcement of this meeting, Twitter’s share price jumped 2%, reports Bloomberg. The company’s stock is currently trading at $37.45 per unit, well below Elon Musk’s offer price of $54.20 per share.