In his letter to Twitter on Monday, Elon Musk threatened to walk away from the deal. The $44 million merger deal has been on hold since April 2022. If the social media platform is unable to provide the demanded data, the deal will be called off.
On April 14, Musk revealed his acquisition deal with Twitter. This deal was marked as the most prominent tech deal in history. In the agreement, it was stated that Musk will be provided the demanded information about the platform. He has the rights to the data and is free to take action with it. In the agreement, this was mentioned.
Since May 2022, data for spam accounts and bots was demanded. Twitter, has failed to provide the data yet. It was stated that the number is around two percent whereas Musk believes it should be around twenty percent. According to the letter, Twitter is transparently refusing to comply with its obligations mentioned in the merger agreement. The agreement was reported, on hold since April. Unless the company provides all the necessary data it won’t move ahead.
Musk wants this data to understand the platform usage better. He wanted to do his analysis and had mentioned his disbelief in the company’s lax testing methodologies. He wants clarity in numbers to make decisions for the platform. There has been no record of a reply from Twitter yet.
Moreover, since the agreement, Twitter’s market price has declined. During April, the market price was recorded at $54.20 per share, but it has declined by 25 percent yet. The difference between the deal price and the actual share price is a matter of concern. This could also play a role in reconsidering the agreement. Musk has discussed his intent in buying the deal for a cheaper price or walking away. If he walks away from the deal, he would be liable to pay $1 billion as a break-up fee. Twitter, can also sue him.
This deal is one of the most prominent deals in tech history. It has been the key topic of discussion globally for months. Before the deal is completely closed, there are factors to be considered from both sides. Though Musk’s decision; is questioned by many experts, it is publicly favored. If he gets the rights he demanded it will be beneficial for Twitter users as well. Users are waiting for the deal to close, and are eyeing the future of the platform.
