For a transient recap, the phrases of the deal amongst Musk and Twitter ended up as follows. On April 25th it was introduced the events experienced struck a deal that would enable Musk to own 100 % of Twitter. All he experienced to do was shell out $54.20 for every single share of Twitter inventory, which totaled about $44 billion. Elon lined up financing for the offer, and the board permitted it. Next, Elon threw a wrench into the is effective.
For some purpose, Elon arrived up with the notion that 20 per cent of Twitter accounts have been bots. This caused him to request the Twitter CEO to validate its bot depend. This induced Twitter’s CEO to clarify in depth how it handles bots on its system. He posted a prolonged site submit about the thorny challenge, and also a tweet thread about confronting spam. This did not fulfill Elon, as he reported the CEO could not demonstrate that it was five p.c, as the company experienced formerly mentioned. As a result, the offer was off, according to Elon. “My give was primarily based on Twitter’s SEC filings remaining accurate. Yesterday, Twitter’s CEO publicly refused to clearly show 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.