If after the announcement that Elon Musk was going to buy Twitter you got angry and decided to open a Mastodon account because of the changes it could bring, this news will cheer you up a bit. After much discussion about whether there were many spam accounts, possible manipulation of Tesla's stock price, warnings from the European Union and more, finally that agreement will not be possible.
Although it is true that the purchase of Twitter was announced, it was necessary to make this announcement before doing anything official so that the shareholders know that a purchase is coming. But as this news indicates, that purchase will not go ahead and the social network will remain as it already is at the administrative level.
Musk unilaterally decides that he will not go ahead with the purchase of Twitter
Last Friday this decision was made official with the following letter sent by Elon Musk's legal team:
Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations that Mr. Musk relied upon in entering the Merger Agreement, and is likely to suffers a Material Adverse Effect from the Company,
Elon Musk's Lawyer
The letter alleged that Twitter had not provided the information Musk requested for "make an independent assessment of the prevalence of fake or spam accounts«. He also said that the data given to Musk was «incomplete and not sufficient to carry out such an independent evaluation.«
Twitter's board chairman, Bret Taylor, said they would take legal action.
Twitter's board is committed to closing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery
Twitter Board of Directors
Following this news, Twitter shares fell 6 percent on Friday after a few hours, CNBC reports. This is because the shareholders see that the company could have been used for Musk to revalue his Tesla shares, element with which that purchase was going to be financed. They have also lost the bonus on the value of the shares at the time of the announcement of the purchase, which can be a punishment for not having obtained said bonus.
Source: The Hill
