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Will Elon Musk make good on his threats and not buy Twitter?

Understanding the consequences

by Norberto
8 June, 2022
in Career Path
0
How Elon Musk's career began

The last few hours have seen yet another chapter in the complex story that has become the purchase of Twitter. Elon Musk once again warned that he was fully prepared to terminate the merger contract if it did not meet the requirements for access to the requested information on fake accounts and the percentage of spam.

This time, the information has been delivered through a letter sent by lawyers and published by the SEC itself.

In the letter, the billionaire claims that he has not received the information he has requested from Twitter. He claims that the managers of the social network are denying him access to this information.

We recall that this information would refer to the reality of fake accounts and the level of spam on the social network. That is Musk’s main reason for slowing down the acquisition process.

The controversy

The controversy began when the billionaire tesla founder claimed that he had received misinformation about the reality of the number of fake Twitter accounts.

He subsequently held discussions with some of the social network’s top executives. Twitter announced that it would share information about its testing methodology for this type of analysis. However, Elon Musk believes that this information is irrelevant and not what he needs.

Musk’s statement has been countered by Twitter, which claims to have actively collaborated with information, and that it will continue to cooperate actively. The positions appear to be very much at odds.

Will Elon Musk pull out of the purchase?

He is a born negotiator. On other occasions, we have seen him make strange or controversial moves concerning his business negotiations. However, this negotiation has been dragging on for longer than usual.

Check ➤  What is polymer chemistry?

Although at first, few thought that Tesla’s top executive could end up backtracking on the purchase of Twitter, some analysts are now saying that this could happen.

Musk’s latest communication refers, for the first time, to legal terms that would allow for the withdrawal of the purchase for breach of contract by Twitter. That is a development that goes beyond halting the purchase process and seeks to create a justification for retreat.

Whether it is a step before withdrawing from the purchase or another pressure measure in this escalation, the fact is that Twitter’s shares continue to fall in the meantime. The economic blow to the value of the social network’s assets caused by this tense negotiation is quite large.

In the coming weeks, we will have to pay close attention to understanding where the value of the social network and the purchase process will evolve.

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Contents

  • 1 The controversy
  • 2 Will Elon Musk pull out of the purchase?

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