The world’s richest billionaire Elon Musk recently sent a letter to Twitter warning that he may withdraw the agreement to buy the entire social network. In the letter, Elon Musk asked Twitter to provide more information about the number of real accounts on the platform. He has repeatedly suggested that Twitter has more spam and fake accounts than it openly admits.
Twitter has offered to provide more detailed information about its testing methods in writing or through dialogue with the billionaire. However, the founder of the world’s leading electric car company Tesla and the aerospace company SpaceX asked Twitter to provide private data for him to perform the test himself, expressing “do not believe that the testing methods The company’s laxity was sufficient, so he had to conduct his own analysis.”
Elon Musk said he can completely cancel the deal to buy Twitter if he is not satisfied. The billionaire’s representative said that Elon Musk would consider Twitter to be “actively fighting and obstructing his right to information” in the event that the social network refuses to provide the requested information. Job refusing to provide data is a “clear serious breach of Twitter’s obligations under the merger agreement,” so Elon Musk has the right to terminate the agreement.
The letter sent to Twitter on June 6 and filed with the Securities and Exchange Commission (SEC) further clarifies Elon Musk’s intention to end the massive acquisition. After reaching an agreement to buy Twitter in April 2022, the billionaire has repeatedly suggested that the transaction can be canceled.
The recent letter set forth in the most direct terms the desire to withdraw with legal arguments. It adds to the uncertainty about whether Elon Musk will close the deal.
As noted by the Independent news agency, many analysts believe that Musk’s motive for asking for more information about fake accounts is to waive the deal or negotiate a discount.
Mr. Susannah Streeter, senior investment and market analyst at securities brokerage Hargreaves Lansdown (UK), commented: “This is a move Twitter investors have been forging over the past several weeks, as Elon Musk’s jumbled thoughts expressed in tweets were transformed into a formal letter to the regulator.” .
Last month, Elon Musk tweeted that “deal can’t go forward” until Twitter provides “proof” that spam and fake accounts make up less than 5% of users as the company has repeatedly. declare. The billionaire also made similar remarks at a conference in Miami (USA), suggesting that he may be trying to create a basis for re-implementation of the agreement.
However, Mr. Musk’s letter on June 6 presented a new strategy. Rather than simply saying they don’t believe Twitter’s numbers, Elon Musk’s attorneys said in the letter that the company was breaching its obligation by not providing information the billionaire deems important to him. agree.
Since billionaire Elon Musk’s initial offer to buy Twitter, a number of tech companies including Twitter, SpaceX and Tesla have faced stock market volatility that has sent their values down.
Twitter shares fell 1.5% on June 6 to close at $39.56. much lower than the $ 54.20 / share that Elon Musk offered when the deal to buy the company.
Pham Ha Thanh (according to Independent, Nytimes)