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Friday, September 30, 2022

Elon Musk Backs Out of $44 Billion Twitter Deal

Bret Taylor, the board chairman of Twitter stated that the business "plans to seek legal action to enforce the acquisition deal"

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Russell Chattaraj
Russell Chattaraj
Mechanical engineering graduate, writes about science, technology and sports, teaching physics and mathematics, also played cricket professionally and passionate about bodybuilding.

UNITED STATES: Elon Musk had bought enough Twitter stock to become the company’s biggest individual shareholder earlier this year. Within a week of the company’s announcement Musk was supposed to join its board of directors. However, the plan has now fallen apart, and Musk has informed the board that he would not be accepting the position.

Elon’s subsequent action consisted of making an unsolicited bid to purchase all of Twitter’s shares for $54.20 a share, or roughly $44 billion.
It appeared to be over on April 25. Elon Musk’s $44 billion purchase offer for Twitter was accepted.

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Naturally, things couldn’t be as easy as they seemed.

After much bluster and a tonne of tweets, Musk wrote Twitter a letter on July 8 in which he announced his intention to dissolve their merger agreement. He asserted that Twitter was in material breach of the agreement, and charged Twitter with making “false and misleading representations upon which Musk relied when entering into the Merger Agreement.”

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His accusation that Twitter violated the agreement is based on an argument that has misrepresented the volume of spam and bot activity on the service and has not complied with his requests for evidence to the contrary.

Bret Taylor, the board chairman of Twitter, reacted in a tweet and stated that the business “plans to seek legal action to enforce the acquisition deal.”

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One of Twitter’s most prominent users, Musk already serves as the CEO of Tesla, SpaceX, The Boring Company, and Neuralink. He also has a sizable following of devoted users. The wealthy executive makes outlandish claims, unsupported memes, and earth-shattering company proposals on the spur of the moment.

Additionally, there are replies that act as a worldwide tech support line for individuals who require assistance with everything from their electric vehicle to politicians looking for satellite internet so they may maintain societal connectivity during a war.

The business argues that the announcement had nothing to do with a poll that an almost board member had posted regarding the feature just before it was announced. During the Musk era, Twitter announced that it would soon test an edit button for tweets.

Also Read: Twitter Begin Deal Talks with Elon Musk over His $44 Billion Offer

Author

  • Russell Chattaraj

    Mechanical engineering graduate, writes about science, technology and sports, teaching physics and mathematics, also played cricket professionally and passionate about bodybuilding.

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