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According to three people close to the case, the Tesla founder’s agreement to buy the microblogging service Twitter is about to go down the drain. The sources with the information to The Washington Post, want to be anonymous.
According to the unnamed people, Elon Musk’s team has stopped engaging in negotiations and discussions to put in place the 44 billion dollars Musk needs to secure the acquisition, the newspaper writes.
The reason why the conversations with potential investors have largely failed to materialize is to be accusations from Musk’s team that a lot of data from Twitter has been sold to corporate customers. In addition, Musk has long questioned the number of so-called “spam” or “fake” accounts that actually exist on the platform.
The Twitter share rose 1.52 percent during the trading day on Wall Street on Thursday, but in after-sales the share falls almost four percent just after the news of a possible collapse in the acquisition.
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Can trigger massive legal battle
That Musk’s team believes that the number of spam accounts can not be verified is expected, according to one of the sources of the Washington Post, to lead to a potentially drastic turnaround.
However, the discussion around these spam accounts has been going on for a while. In early June, Musk sent a letter to the company in which he wrote that Twitter “actively opposes and hinders his rights to information”.
The letter further states that “this is a clear breach of Twitter’s obligations. Mr. Musk reserves the right not to complete the transaction.
It was in April that the news came that Musk, who is one of the richest people in the world, wanted to buy Twitter. But even before this, the Tesla founder began to buy into the company, where he became the largest shareholder with a stake of 9.2 percent of the shares.
It has previously been known that it will cost him one billion dollars to break the agreement. If Musk withdraws from the agreement, it will most likely trigger a massive legal battle, according to the newspaper.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms se her.
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