For a temporary recap, the conditions of the offer between Musk and Twitter were being as follows. On April 25th it was introduced the events experienced struck a deal that would enable Musk to personal 100 percent of Twitter. All he experienced to do was pay $54.20 for each and every share of Twitter stock, which totaled all-around $44 billion. Elon lined up funding for the offer, and the board authorised it. Upcoming, Elon threw a wrench into the operates.
For some explanation, Elon came up with the idea that 20 per cent of Twitter accounts were bots. This triggered him to inquire the Twitter CEO to confirm its bot rely. This caused Twitter’s CEO to clarify in detail how it handles bots on its system. He posted a lengthy website article about the thorny situation, and also a tweet thread about confronting spam. This did not satisfy Elon, as he stated the CEO couldn’t prove that it was 5 percent, as the business experienced earlier mentioned. Therefore, the deal was off, according to Elon. “My provide was centered on Twitter’s SEC filings remaining exact. Yesterday, Twitter’s CEO publicly refused to display evidence of <5%. This deal cannot move forward until he does,” he tweeted.
This caused the company’s board of directors to respond. In a proxy statement filed with the SEC, the board says it’s planning on moving ahead with the deal despite his concerns. It bluntly stated, “Twitter is committed to completing the transaction on the agreed price and terms as promptly as practicable.” CNN obtained a statement from Twitter’s board saying it’s time for Elon to get out his check book. “The Board and Mr. Musk agreed to a transaction at $54.20 per share. We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement,” read the statement. This seems like a blatant legal threat to Elon if he tries to walk away from the deal as-written.
Industry analysts have opined that Musk’s belly aching about bots is an attempt by him to lower the purchase price. Although Musk’s $54.20 per share offer was generous in April, it’s extremely generous now as the stock has fallen quite a bit since the heady days of early April when Musk purchased nine percent of Twitter’s stock. Whether or not Elon will go through with the deal in its current form remains to be seen. For now the ball is in his court.