For a transient recap, the conditions of the offer concerning Musk and Twitter have been as follows. On April 25th it was declared the events experienced struck a offer that would enable Musk to possess 100 percent of Twitter. All he had to do was pay out $54.20 for every single share of Twitter stock, which totaled around $44 billion. Elon lined up funding for the offer, and the board accepted it. Subsequent, Elon threw a wrench into the operates.
For some explanation, Elon came up with the idea that 20 p.c of Twitter accounts were bots. This prompted him to inquire the Twitter CEO to verify its bot depend. This brought about Twitter’s CEO to make clear in depth how it handles bots on its system. He posted a lengthy blog site publish about the thorny situation, and also a tweet thread about confronting spam. This did not satisfy Elon, as he said the CEO could not confirm that it was five per cent, as the business experienced previously mentioned. As a result, the offer was off, according to Elon. “My supply was based mostly on Twitter’s SEC filings remaining correct. Yesterday, Twitter’s CEO publicly refused to exhibit proof 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.