Twitter: Musk Didn't Ask For More Information When Signing The Acquisition Agreement

take 6 minutes to read
Home News Main article

Techweb reported on May 18 that on Tuesday, US local time, twitter announced the negotiations on the acquisition deal with Elon Musk, CEO of Tesla. The company said in its power of attorney that musk did not ask twitter for more information when signing the acquisition agreement.

In the proxy letter, twitter outlined the details that shareholders need to know before voting on the deal, depicting a scene in which musk is eager to finalize the deal with its "best and final offer". Musk negotiated the deal with twitter on April 23 and 24, but did not conduct any due diligence.

However, since the signing of the agreement on April 25, musk has always questioned the accuracy of the number of false accounts and spam accounts provided by twitter in the financial report. Twitter acknowledges that these accounts account for less than 5% of its daily active users, but musk believes they account for at least 20%. Although Twitter has warned in its submission that the actual figure may be higher than its estimate.

Independent researchers predict that 9% to 15% of twitter accounts are chat robots, not real people.

Musk tweeted on Tuesday that Twitter CEO Parag Agrawal refused to provide evidence for the company's estimates. The deal cannot go ahead until he gives evidence. However, Twitter's power of attorney shows that musk has not verified and investigated these data in the preparation stage of the transaction.

Twitter said in its power of attorney: "Musk did not require a confidentiality agreement, nor did it seek any non-public information about the platform from twitter." The power of attorney also does not mention Musk's threat on twitter, that is, if he can't find out how many false accounts there are on the platform, he won't promote the transaction.

Twitter investors seem convinced that a deal at an agreed price is now impossible. On Tuesday afternoon, Twitter's share price rose to $37.55, but there was still more than 30% discount from the negotiated purchase price of $54.2 per share.

Musk first said at a meeting in Miami on Monday that the deal could be completed at a lower price, but gave no specific explanation. He has not yet informed twitter whether he wants to renegotiate the deal.

According to the contract, if musk withdraws from the transaction, he will be forced to pay a $1 billion breakup fee. At the same time, twitter can also sue musk, ask him to fulfill his obligations and force him to complete the transaction.

Ann Lipton, a professor at Tulane University Law School, said musk didn't ask twitter for any information before signing the agreement, which means he must now prove that the company's public documents are wrong and pose a major long-term financial problem. However, achieving this goal is very challenging.

Twitter said on Tuesday that it was still committed to completing the deal at the agreed price and expected it to be completed in 2022.

The Ps5 Official New Color Matching Mainframe Shell Will Be First Launched In Some Parts Of Europe And America In June
« Prev 05-18
According To The Survey, This Is The Best Time To Watch Stars In The UK Since 2011
Next » 05-18