BREAKING: Elon Musk wants to break off his agreement to buy Twitter. In a letter to the company, filed Friday with the SEC, Musk accuses Twitter of making 'false and misleading representations' about the prevalence of fake accounts on its platform.
the deal was"in jeopardy" because Musk doubts that Twitter's spam figures are verifiable. His team was"expected to take potentially drastic action," theBots may not be the only factor in Musk's change of heart. While his offer of $54.20 a share was initially seen as a lowball price for Twitter, given that it was trading above $70 last year, tech stocks and the market as a whole have fallen sharply since he struck the deal.
For years, Twitter has publicly said it estimates less than 5% of daily users who see ads are spam or bots . "Merger agreements are drafted to avoid exactly what Musk is doing, which is try to find some tiny little false thing and then say, 'Whoops, I get to walk away now," said Ann Lipton, a business law professor at Tulane University Law School."They specifically say things like, you can't back out unless it's not just false, but incredibly false, hugely false, massively damaging to the company.
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