primer domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/ikq167bdy5z8/public_html/propertyresourceholdingsgroup.com/wp-includes/functions.php on line 6114Twitter claims it will ‘enforce’ the merger agreement — in which Musk waived due diligence — at the agreed-upon price and parameters, as the Texas attorney general announces an investigation into the frequency of ‘bots’ on Twitter.
Twitter Inc. shares dipped on Monday after Elon Musk indicated he may cancel the merger if the social media company continues to fail to provide details about spam and bogus accounts that he has demanded.
Musk claimed in a letter to Twitter TWTR, -1.49 percent, via the law firm Skadden, Arps, Slate, Meagher & Flom LLP, that Twitter had repeatedly refused to disclose information to help him evaluate spam and phoney accounts on Twitter’s platform. Tesla Inc. TSLA, +1.60 percent CEO Elon Musk said Twitter’s promise to share specifics on its testing methodology amounted to a refusal to comply with his requests.
Keep in mind that before agreeing to the merger’s terms, Musk forfeited his right to undertake due diligence on Twitter.
“Mr. Musk has made it obvious that he does not believe the company’s current testing processes are appropriate,” the letter added, adding that he must undertake his own investigation.
In an emailed reply to MarketWatch, Twitter reacted to Musk’s letter, claiming that it “has and will continue to cooperatively exchange information” with him.
According to Musk, Twitter is obligated to give information for “any reasonable business purpose” connected to the merger’s completion under the conditions of the deal. Furthermore, Musk stated that Twitter must comply with his efforts to get the necessary funds, which includes giving information that he “reasonably” demands.
According to Musk’s letter, “as Twitter’s prospective owner, Mr. Musk is certainly entitled to the requested data to enable him to plan for transitioning Twitter’s company to his ownership and to effectuate his acquisition finance.” “To do both, he’ll need a comprehensive and precise understanding of Twitter’s business model’s main pillar – its active user base.”
As a result, he believes Twitter’s refusal to provide the requested information is a “clear material breach” of the merger agreement, and “Mr. Musk reserves all rights arising therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” according to the letter.
Twitter’s hesitation to share the information is prompting “additional suspicion” that Twitter is afraid about what Musk might find, according to Musk.
Separately, Texas Attorney General Ken Paxton revealed Monday afternoon that Twitter is being investigated for “possibly deceiving Texans on the number of its ‘bot’ users.”
“I have a duty to protect Texans if Twitter is misrepresenting how many accounts are fake to boost their revenue,” Paxton tweeted. Paxton had previously launched a state investigation into Twitter in the aftermath of the Jan. 6, 2021, attack on the U.S. Capitol by Trump supporters over “apparently coordinated de-platforming of the President.” Twitter responded by suing Paxton, alleging that in 2021, Paxton was abusing state power to seek political retribution.
Meanwhile, Twitter has stated that it intends to stick to the present merger agreement, which it feels is in its shareholders’ best interests. In a statement, Twitter said, “We plan to close the acquisition and enforce the merger agreement at the agreed price and terms.”
Keep in mind that before agreeing to the merger’s terms, Musk forfeited his right to undertake due diligence on Twitter. In a statement describing the merger deal, Twitter stated, “Mr. Musk further confirmed that his purchase bid was no longer contingent to the completion of financing and business due diligence.”
Following its announcement that it intends to hold Musk to the terms of the transaction, Twitter’s stock recovered 1.6 percent on Monday, reversing earlier losses of up to 5.6 percent. The stock was trading at $54.20 a share, or 28% below the agreed-upon buyout price.
Musk is still “playing hardball,” according to CFRA analyst Angelo Zino, as he tries to acquire leverage to either decrease his bid for Twitter or walk away entirely if he gets cold feet.
In a note to clients, Zino said, “Ultimately, we are finding it increasingly difficult to foresee a situation in which this does not get decided in the courts.”
Musk’s latest warning comes just over a week after announcing an increase in the amount of money he’ll spend to buy Twitter, which seemed to underline his commitment to the transaction at the time. Twitter’s stock had risen 6.4 percent as a result of the news, and it is currently trading higher than it was before the spike.
Meanwhile, Tesla’s stock was up 0.4 percent at midday Monday, after initially rising as much as 4.4 percent after Musk’s letter was made public. Some investors believe Musk’s purchase of Twitter will divert his attention away from Tesla, which could lead to his selling a big portion of his Tesla stock.
Over the last three months, Twitter’s stock has gained 17.6%, while Tesla’s stock has lost 15.7 percent and the S&P 500 index SPX, -0.97% has lost 4.9 percent.
