For a quick recap, the terms of the offer in between Musk and Twitter were as follows. On April 25th it was announced the events experienced struck a offer that would let Musk to very own 100 % of Twitter. All he had to do was pay out $54.20 for each and every share of Twitter stock, which totaled close to $44 billion. Elon lined up funding for the offer, and the board authorised it. Subsequent, Elon threw a wrench into the functions.
For some cause, Elon came up with the strategy that 20 percent of Twitter accounts have been bots. This induced him to inquire the Twitter CEO to confirm its bot rely. This triggered Twitter’s CEO to describe in detail how it handles bots on its system. He posted a prolonged weblog submit about the thorny problem, and also a tweet thread about confronting spam. This did not fulfill Elon, as he mentioned the CEO could not show that it was five %, as the business had earlier mentioned. For that reason, the offer was off, in accordance to Elon. “My provide was dependent 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.