Almost a month has passed since the explosion, figuratively of course, of the second bomb, after the first one that exploded when Musk announced that he had bought Twitter with a monstrous investment. In mid-May, the South African tycoon abruptly put the acquisition on hold: “I await details (numbers, ed) in support of the calculation according to which the ratio of spam / fake accounts is actually less than 5% “as they have always declared – even recently – the leaders of Twitter.
From the upper floors of the blue bird, however, no reassurances have come, or at least not the ones that would have convinced Musk to go through the steps to complete the $ 44 billion deal. So today we moved on to the facts. Tesla’s number one lawyer team sent a letter to Twitter in which they claim that they have not received details on the bot plague to which they are entitled under the agreement signed in late April, which now seems a long way off.
Here is a crux of the letter written by Musk’s lawyers:
Mr. Musk has the right to ask, and Twitter is obligated to provide, information and data for, among other things, “any reasonable business purpose related to the conclusion of the transaction.” […] As a potential Twitter owner, Mr. Musk is clearly entitled to the required data […] for facilitate the financing of the transaction. […] At this point, Mr. Musk believes that Twitter is clearly refusing to fulfill its obligations under the merger agreement, which generates more suspicious that the company is struggling to provide the requested data concerned by what Mr. Musk may discover by analyzing such data.
MUSK WANTS TO BLOW THE BENCH AND AVOID A 1 BILLION PENALTY?
The letter ends like this, waving the specter of contract termination which Musk, according to his lawyers, could turn to if Twitter continues to make a wall:
Based on Twitter’s behavior to date, and in particular the latest formal exchanges, Musk believes the company is resisting by denying him his right to information under the agreement. This is a clear material breach of Twitter’s obligations under the merger agreement, and Mr. Musk reserves all resulting rights, including that of do not complete the transaction terminating the agreement.
According to long-time Wall Street analyst Dan Ives, Musk he would be stubbornly looking for a legitimate way to blow the deal without paying the $ 1 billion penalty which would be foreseen by the contract. The Twitter board, according to Ives, will do everything to make sure that doesn’t happen.
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