Twitter wants to keep supporting Musk to act

Billionaire Elon Musk is trying to adjust his takeover deal under the pretext of being unclear about the number of spambots on Twitter. But the company is steadfast and also seems to have the necessary legal arguments for.

A emoji of a smiling stool. It is the level at which the acquisition soaps about social media company Twitter

descended. In a comprehensive explanation of Twitter CEO Parag Agrawal about how his company the number of spam accounts active on the social network designed replied potential buyer Elon Musk with an icon officially pile of poo “hot.

These spam accounts or bots, and how they are counted, have been the subject of much discussion in recent days, in the margins of the takeover bid recently made by Tesla boss Musk. According to Twitter, bots create fake accounts for less than 5 percent of all 229 million daily users. But Musk says he does not believe these numbers and put the purchase on hold until he received what he felt was ‘logical explanation’. The explanation Agrawal gave on Twitter, which the audience encounters, according to Musk, clearly does not qualify.

smokescreen

It’s not entirely sure what Musk’s motives are. But most observers suspect the billionaire is using spam bots as a smokescreen to blow up the deal without paying the $ 1 billion severance pay fee, or at least getting the negotiated deal price to be renegotiated.

1 billion

severance

If Elon Musk breaks the agreement with Twitter illegally, he will have to pay a fee of 1 billion.

The latter scenario seems the most likely. Musk himself alluded to that Tuesday at a conference in Miami. “You can’t pay the same price for something that works worse than said,” he said. When asked if the sale could continue at a different price, Musk said: “It’s not out of the question. The more questions I ask, the bigger my worries become. ‘

The only question is whether the number spambotterer a valid reason to put everything on pause if the agreement breaks down as Musk does now. When billionaire was still in the honeymoon, excited about his bid tweeted he enthusiastically that he would make it his job to “defeat spam bots, like the bid would succeed. That’s it or die while we tried it,” it sounded like pugnacious . At Musk same effect now looks like an insurmountable obstacle, sounds a bit bizarre.

Musk also legally does not seem to support the curves of recent days. Official documents published about the acquisition agreement show that Musk has explicitly opted out of his right to a due diligence – an in-depth revision of the relevant figures.

In other documents, Twitter even mentions it as the reason it entered into an agreement with Musk instead of searching the market for other potential buyers. “Other buyers would require significant due diligence, which would greatly delay a potential transaction,” it reads.

Return of the Mac

Musk, on the other hand, believes that if the figure that Twitter indicates on the number of spambots is incorrect, there is a ‘significant negative change’, a legal term that would invalidate the closed agreement. But according to legal experts, such a ‘MAC’ argument very difficult to substantiate. Especially if the said figure was already in the legal documents that came with the deal and no objection was raised in the original agreement.

Twitter is planning to stand firm. In a statement to The New York Times, the company is very clear. “The Board and Musk have reached agreement on a transaction for $ 54.20 per. Share. We believe that this agreement is in the best interest of all shareholders. We therefore intend to complete the transaction and enforce compliance.”

See if year technology agreement finally is mired in legal mud fight. And the soap still manages to surpass the level of a pile of feces.

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