Musk terminated the acquisition of Twitter 44 billion US dollars to welcome the finale?Twitter response: The termination letter is invalid

Cover Journalist Zhu Ning

On August 30, Beijing time, Tesla CEO Elon Musk's consultant issued a notice to Twitter, officially announced that Musk would terminate the acquisition of Twitter.

In the notice, Musk's consultant emphasized that on July 8th Musk had announced the termination of Twitter's acquisition, but Twitter has always questioned the effectiveness of the notice. With the recent "whistle" report Twitter has serious problems in various aspects such as user privacy and network security, Musk believes that Twitter has clearly violated the acquisition agreement before. Provide strong evidence.

In this regard, Twitter responded to the "termination letter" issued by Musk, saying that the "termination letter" was invalid and wrong. Twitter claims that there is no statement or obligation under any agreement; the company has not yet received it, and it is unlikely to be affected by major adverse effects. Twitter plans to execute the agreement and complete the transaction in accordance with the price and terms agreed with Musk.

As of the close of the day, Twitter reported 1.80%to $ 39.32.

The acquisition process is extremely twists

In fact, when Musk announced that he wanted to acquire Twitter, most of the market analysis thought it was just a hype. At least Twitter should refuse, but what I did not expect was that Twitter did not consider it. The request of Musk's acquisition was agreed, and the two sides also started negotiations.

On April 4, Twitter issued an announcement saying that Musk had purchased 9.2%of Twitter shares and became the largest shareholder. Immediately in mid -April, Musk proposed the acquisition of the social media platform Twitter. On April 25, local time, Twitter accepted Musk's acquisition agreement. According to the agreement, Musk plans to acquire Twitter at a price of about $ 44.2 per share, totaling about $ 44 billion.

But as Musk's changes in other things, in the process of acquiring Twitter, he announced on social platforms that he will give up the acquisition of Twitter because the number of Twitter in the false account did not Provide real data that violates the terms in the acquisition agreement.

On July 8th local time, Musk said that he would terminate the acquisition of Twitter because Twitter seriously violated multiple terms in the agreement. Musk said that Twitter did not "obey his contract obligation."

Musk's changes made the market elusive. After the announcement of the termination of the acquisition, on August 6, local time, Musk also said that if the actual user account data of the social media platform Twitter can be confirmed, he acquired Twitter transactions. It is still possible to continue. But he also added, "However, if the facts prove that the documents they submitted to the US Securities Regulatory Commission are major false false, then it should not be done."

There is no conclusion

It is worth noting that when Musk announced the acquisition of Twitter and the two parties began to contact, the agreement stipulated that if the transaction is terminated, the party who violates the agreement shall pay $ 1 billion to the other party. More importantly, in terms of In the agreement, Twitter can force Musk to execute the transaction.

Who comes out of the $ 1 billion "breakup fee"? Is it because of whom caused the transaction to terminate? This is Musk's most concerned about the market after the acquisition of Twitter.

After Musk said it would terminate Twitter's acquisition, Brett Taylor, chairman of the board of directors of Twitter, said that the board of directors was committed to completing the transaction at the price and terms agreed with Musk, and plans to take legal actions to promote the acquisition agreement. Twitter's "confidence" will win.

On July 13, Twitter directly sued Musk and tried to force Musk to acquire the company. Twitter accused Musk accusing Musk's violation of the "one -long series" acquisition agreement and brought shadow to Twitter business.

Facing Twitter's prosecution, Musk also responded to himself. On July 29, Musk launched a counterclaim to Twitter. A counterclaim document said Musk was blinded when signing the acquisition agreement. Twitter immediately rejected the statement, saying that Musk's counterclaim statement was "contrary to the facts."

According to Lawyer Musk, Twitter claims that its daily active users have reached 238 million, but their platforms actually see advertising users less than 65 million, and most of the advertisements are displayed to less than 16 million users. Twitter retorted that Musk did not "put forward a trace of evidence" for these "no facts" allegations. Twitter said that Musk was playing digital games and ignored the working principle of its online advertising system.

Although both parties have their own reasons, as of now, the incident has not yet been concluded. According to relevant news, Twitter sued the Musk case from October 17th to 21st. Essence Once Musk wins the lawsuit, he will not have to acquire Twitter or pay a $ 1 billion "breakup fee".

You need to wait for the final trial results

"Any large acquisition will continue to be short, and the game between Musk and Twitter will not end there." Some professionals in M ​​& A told reporters that this is not the first time Musk announced the termination of the acquisition. Whether it will continue to be acquired in the future, it is not known; at the same time, Twitter sued Musk, and the demand was forced Musk to acquire the company. Therefore, after the subsequent trial results were clear, the acquisition may still change.

The analyst said that because Musk has a greater influence on social platforms, especially in the stock market, he has made remarks many times, which has caused many companies, including their own companiesHe benefited very much.After Musk claims that the number of false accounts for Twitter is not true, Twitter's stock price does fluctuate, then it will cause a consequence that the valuation of Twitter will be reduced. If Musk's real intention lies in the acquisition, then the horse will eventually horse.Ske can use this as a reason to suppress the price and reduce costs.If Musk's intention is to terminate the acquisition, it needs to list the previous counterclaim evidence to win the court trial.

It is worth noting that according to foreign media reports, a court document disclosed on August 29 shows that Elon Musk's lawyer team has summoned the former security supervisor Peter Zartko, hoping that it can provide related relatedDocuments and communication records of Twitter false accounts and security vulnerabilities.

What is the final ending of Musk's enough Twitter case?Cover journalists will continue to pay attention.

- END -