Jakarta –
It was as if I was really serious about buying Twitter USD 44 billion or around IDR 659 trillion, Elon Musk suddenly back off. Actually, it’s not sudden, he has given signals that he is not sure about acquiring the social media. Twitter has confirmed that it is ready for war.
In a letter to the SEC (Securities and Exchange Commission), Mike Ringler, Elon Musk’s attorney, accused Twitter of violating the merger agreement by not providing sufficient information about the number of fake or spam accounts.
In essence, Elon Musk believes that Twitter is not transparent in counting spam accounts or bots on its services, even though the information is considered very important for Twitter’s business and financial performance.
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As quoted detikINET from CNBC, legal experts say Musk’s desire to cancel the purchase of Twitter will not be easy. In fact he will face a long battle in court, maybe months.
“Twitter directors can’t immediately, for example, lower prices or agree to have Elon Musk pay $1 billion for stepping down,” said Ann Lipton, a law professor at Tulane Law School.
There are indications Elon Musk will continue the purchase of Twitter if the price is lowered and previously there was also an agreement he would pay a fine of USD 1 billion if cancelled. But it looks like it won’t be that easy.
If Twitter lets Elon Musk get away with it, Twitter shareholders could potentially launch a lawsuit against them. On the other hand, Elon Musk’s argument about why he stopped buying Twitter is weak. This means that Twitter could win in court later.
“Elon Musk made a number of legal arguments, I think all of them are still questionable. He initially focused on bots on the platform but also on company performance, so he seemed to just throw everything,” said Adam Sterling, legal analyst.
Twitter has confirmed that it is suing Elon Musk. This was conveyed by the head of the Twitter Independent Board, Bret Taylor, in response to the shocking decision of the world’s richest man.
“Twitter’s board is committed to closing the deal at the price and terms agreed with Elon Musk and plans to take legal action to enforce the merger agreement,” Taylor said on Twitter.
Watch Videos “Analyst Calls Twitter Vs Elon Musk Polemic Like ‘Game of Thrones’“
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