Elon Musk suspends deal to buy Twitter

“The Twitter deal is temporarily on hold pending details confirming that spam and fake accounts do represent less than 5% of users,” Musk wrote.

After that, the shares of the social network in the preliminary auction fell by 20%. Meanwhile, Tesla shares rose more than 5% in pre-bidding.

At the end of March, Elon Musk tweeted that he was “seriously thinking” about creating a new social network. Two days before, the billionaire published a survey in which asked users, whether the platform management strictly adheres to the principles of freedom of speech. More than 70% of those who took part in the survey voted for the “no” option (does not adhere).

In early April, it became known that back in mid-March, the entrepreneur has gained 9.2% stake in Twitter. By data CNBC, purchase could have cost more than $2.89 billion amid this social media stock news grew up by 26%, up to $49.56 apiece.

Buying Twitter

On April 14, Musk announced his intention to buy a 100% stake in Twitter. To his microblog post, he attached a link to a document with a letter to Twitter CEO Bret Taylor and transcripts of his conversations with company executives.

“From the moment [покупки акций Twitter] I realized that, in its current form, the company would neither prosper nor serve this societal imperative. Twitter needs to be turned into a private company,” the businessman said.

The billionaire offered to buy 100% of Twitter shares for $54.20 per share in cash, noting that it was up 38% from the day before his investment was announced publicly.

Ten days later, Reuters, citing a source reportedthat the founder of SpaceX and Tesla acquires the social network Twitter. Shortly thereafter, the company itself announced that it had entered into a definitive agreement for Elon Musk to acquire Twitter for $54.20 per share in cash in a deal worth about $44 billion. Twitter’s takeover process is expected to take three to six months.

The next day, on April 26, Musk reported that the administration of Twitter “wrongly” suspended many accounts for “posting true stories.” At a Twitter staff meeting following the news of the deal, staff were told that Musk “has a unique ability to unleash the company’s potential and bring a spirit of innovation to the social network to grow its audience and increase profits.”

Twitter co-founder Jack Dorsey, who recently left the company, said that “Elon is the only solution” that can be trusted. The press service of the social network declined to comment. By data The Washington Post, the company’s employees were not enthusiastic about the purchase by Musk – on the contrary, they expressed fear and shock. Some of them refuse to discuss the situation at all, publishing memes on social networks.

In the event of a disruption in the deal to buy Twitter through the fault of Musk, the businessman will have to pay a commission of $ 1 billion, informed Securities and Exchange Commission (SEC). The same amount of penalty threatens the leadership of the social network if the agreements are violated through his fault.

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