Takeover view of Twitter by Elon MuskCEO of are you here$44 billion may not get passed, with some legal experts claiming that the billionaire could use the rumor of the “preponderance” of “bots” on the social media platform “as an excuse to abandon or renegotiate his deal.”
Bloomberg quotes Andrew Friedmanpartner and active investment specialist in the law firm Olshan Fromm and Woski :
“He’s playing it hard. He’s trying to create a paper trail. What’s unfortunate for Musk is that the termination provisions in the merger agreements don’t allow buyer regrets.”
But the same outlet quoted two unnamed sources as saying that “behind the scenes” Misk’s deal to buy Twitter is “underway,” while the “two parties” continue to “meet regularly and exchange information.”
However, the situation looks completely different in public. The Associated Press reported that Musk’s legal team sent a letter accusing Twitter of providing only details about Twitter’s testing methods. Musk instead asked to see bot data on the platform and previously claimed that up to 20% of accounts could be automated. Twitter management claimed that this figure does not exceed 5%.
Musk previously described crypto-related bots as an “annoying issue on Twitter.”
Musk’s lawyers wrote that Twitter’s refusal to comply with Musk’s “data requests” constituted a “material breach” of the settlement agreement. According to them, this gives Musk the right to withdraw consent:
“This is a material breach of Twitter’s obligations under the Merger Agreement and Mr. Musk reserves all rights under it, including his right not to complete the Transaction and his right to terminate the Merger Agreement.”
Legal experts have claimed that Musk’s options may be limited. If he withdraws from the operation, he will have to compensate Twitter with up to $1 billion.
According to the Associated Press, Brian Quinn, a law professor at Boston CollegeMr. Musk has already waived his ability to pursue additional due diligence, he said, meaning the courts are unlikely to support any attempt to renegotiate the deal or turn its back on him.
Musk is either looking to get out of the deal or get some leverage to renegotiate the price. I doubt he’s been allowed to get away. At some point, Twitter’s board will get bored and sue. [pour obliger Musk à s’en tenir à l’accord initial]. “
But the question of robots appears to be a serious point of contention for Musk. Twitter previously reported its 5% estimate to US regulators, but acknowledged that the number could be too low.
Musk’s lawyers wrote in the letter:
“While Twitter is confident in the publicly available spam estimates, Mr. Musk does not understand the company’s reluctance to do so.” [lui] Allow these estimates to be independently evaluated.”
Musk previously said the deal was “on hold,” but legal experts who spoke to both outlets appeared to suggest he didn’t have much wiggle room.
Bloomberg quotes Jill fishBusiness and law specialist Carey School of Law From’University of Pennsylvaniawho said Musk was trying to “hit the financial markets” with his legal team’s statement.
In its own statement in response to the bot’s accusations, Twitter said it had “shared and will continue to collaboratively share information” with Musk.
Twitter added that it believes the transaction is now in the interest of all of its shareholders and that it “intends” to “complete the transaction and implement the merger agreement at the agreed price and terms”.
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