The information comes after the billionaire announced on the same day that he was abandoning a “huge” deal with Twitter, citing the social media company’s violation of many terms in the agreement.
Specifically, in a document released on July 8, Musk’s lawyers said Twitter did not respond or refused to provide information about spam and virtual accounts on the platform. This is supposed to be the basic rule in the company’s business activities.
The document emphasizes that Twitter seriously violated many of the terms of the agreement by providing false information that billionaire Musk relied on to approve the deal. According to his lawyer, billionaire Musk believes Twitter seeks to impede his right to access information.
In addition, Mr. Musk also withdrew from the agreement because Twitter had fired many senior executives and about 30% of the company’s high-quality employees. That action by Twitter was found to be in violation of its “responsible for keeping the physical components of the company’s existing business intact”.
Experts say that billionaire Musk’s decision could lead to a lengthy legal battle between him and the company that has existed for the past 16 years and is headquartered in San Francisco (USA). However, some sources say Twitter hopes that the court proceedings will begin in a few weeks and the case will be resolved in a few months.
Disputed mergers and acquisitions filed in Delaware courts often end with the companies renegotiating the transaction agreements, or the acquirer paying the interested party a settlement to waive transaction, instead of the court ruling that the transaction must be closed. That’s because the companies targeted often want to resolve uncertainties about their future and then move on.
In April this year, billionaire Musk announced a deal to “acquire” Twitter worth $ 44 billion at $54.2 per share. However, he later announced the suspension of the deal unless Twitter showed evidence that spam and virtual accounts account for less than 5% of users who see ads on this social network – a number calculated by Twitter itself. and announced in early May.
Meanwhile, a group of Twitter investors and small shareholders have filed a lawsuit against Mr. Musk for deliberately driving down Twitter’s stock price in an attempt to withdraw his agreement to buy the platform or negotiate a discount on the purchase price.
According to Reuters
Source: Vietnam Insider