Elon Musk, chief executive of American electric car maker Tesla Inc. and head of SpaceX, decided to buy Twitter in April. Musk signs a deal to buy Twitter for $44 billion. But Musk backed out of the Deal to buy Twitter in July. The world’s richest person revealed some conditions to fix the Deal again.
Before, Elon Musk became the 9.2 % shareholder of Twitter. Shares of Twitter rose 4% to $50.62 after Musk announced the $44.4 billion Deal. But Musk agreed to buy Twitter for $54.20 a share.
Elon Musk’s conditions for Renewal the contract to buy Twitter
Elon Musk won’t enter into a deal to buy Twitter until the number of fake users is less than 5%. If Twitter can fulfil what it claims, then Elon Musk will enter into the Deal to buy Twitter for $44 billion.
Tesla CEO claimed that more than 20% of fake users are on the Microblogging site Twitter. But the Twitter authority has directly refused that statement. That’s why Musk wants the proof of their saying.
Tesla CEO also tweeted,’ if the claiming of Twitter authority is proven false by the US Securities and Exchange Commission, Then this Deal will not see the light of day.’
One user of Twitter is why US Securities and Exchange Commission is not taking any steps in this matter. Musk replied, ‘Why Not’?
But the Twitter authority didn’t make any comment about this matter. Musk also said that Twitter Authority tried to complete the Deal by cheating and Keeping information confidential. But Twitter rejected the claim of Elon Musk. They said, What Elon Musk said is entirely unimaginable and unreal.
Why did Elon Musk Call off the Deal?
Tech Entrepreneur and richest person call-off Deal of buying Twitter due to many fake users. And for a mazy statement of Twitter.
The leading layer of Elon Musk revealed We didn’t get any response while asking for information several times. They failed to provide accurate information. In comparison, this is the main agenda of business.
For cancelling the Deal with Twitter, Musk will go to court and ask for 1 billion dollars for a breakup fee and another recompense.
Again Twitter Chairman Bret Telor said they would take legal steps to effect the Deal with Elon Musk.
Elon Musk in court forthe Twitter case
The court ordered the trial for the Twitter case to begin in October. However, according to a BBC report, Musk’s lawyer has lobbied for the date to be pushed back. Note that last April, Musk announced the purchase of Twitter. However, Twitter did not provide accurate information on spam and fake users, claiming that Musk cancelled the Deal on July 8. That’s why twitter authorities filed a court case for unethical exit from the contract. Elon Musk’s legal team wanted to set a hearing date for the case at the beginning of next year, citing various complications. On the other hand, Twitter authorities wanted to start the case in September. The court ordered that it would finally start in October.
Twitter’s lawyers also claim that the termination of the contract with Elon Musk is causing constant losses for Twitter, causing the share price to fall, which has had a significant effect due to the cancellation of the contract.