Twitter and Elon Musk set to enter legal battle; social network asks employees to secrecy

Update (07/11/2022) by LL

After a long negotiation process and many controversial statements, Elon Musk chose to withdraw from the agreement to purchase the social network Twitter. The billionaire took the first steps to cancel the deal, but Twitter does not intend to “take it easy”. The company allegedly hired a law firm to start a legal battle against Musk.

Musk stalled negotiations with Twitter when the platform was unable to provide statistics on fake accounts. The social network claimed that it removes more than a million “bots” a day, and therefore would be unable to provide such a report. But beyond that, Musk’s team claims the deal was violated when Twitter fired two executives and froze hiring.

In an official statement, Twitter said it was committed to closing the transaction at the price and terms agreed with Musk. Employees of the social network were instructed to keep the matter confidential.

The chapters of this story must continue. The legal battle between Twitter and Elon Musk is expected to be a big one, as the dispute could mean a major victory for the social network. The $44 billion deal with Musk translates to $54.20 a share, even though each share is currently costing around $30.

In addition, both parties agreed to pay a termination fee of US$ 1 billion if one of them withdraws. In this case, the amount is being charged to Musk.

What’s your take on the dispute between Twitter and Musk? What do you think the outcome will be? Tell in the comments!

Update (07/08/2022) – by PF

Twitter: Internal statement asks employees not to post about business with Elon Musk

In yet another chapter of this story, Twitter issued a statement to its employees asking them not to post comments about the unfulfilled deal between the social network and Elon Musk.

Just yesterday (8), the businessman presented a document to the SEC, the American body that regulates the market, informing the withdrawal of the purchase of the social network. According to Tesla’s CEO, Twitter did not provide the requested information, which would violate the terms of the agreement. In a statement, the network’s representatives said they would go to court to enforce the signed deal.

Now, an internal document written by Sean Edgett, Twitter’s general counsel, urges the network’s employees to refrain from tweeting, slacking or sharing any kind of commentary about the business. In addition, he quotes a quote from Twitter President Bret Taylor about how the company intends to complete the transaction: “on the price and terms agreed with Musk”.

The statement follows Musk’s resignation from the deal and some humorous tweets posted by network officials. In one, the employee cites a staff trip to Disney that would have had to be canceled as a cost-cutting measure following Musk’s announcement.

Check out the full statement below (translated from English to Portuguese):


today we received a notice of alleged termination from Elon Musk, and the Twitter Board issued the following statement in response (see our Chairman Bret Taylor’s Tweet here):

“The Twitter Board is committed to closing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery.”

As this is an ongoing legal matter, you should refrain from Tweeting, slacking, or sharing any comments about the merger agreement.

We will continue to share information when we can, but please know that we will be very limited in what we can share in the meantime.

I know this is an uncertain time and we appreciate your patience and continued commitment to the important work we have in progress.

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Update (07/08/2022) – by DT

Elon Musk gives up on buying Twitter and the social network promises legal battle

This Friday (8), billionaire Elon Musk sent a document to the SEC, the American body that regulates the market and is equivalent to our Securities and Exchange Commission, informing that it left the purchase agreement of the twitter, closed at the end of april.

According to Tesla’s CEO, there was a violation of several provisions of the agreement signed with the social network. In a statement, Twitter said the company would go to court to enforce the deal signed with Musk.

“Twitter’s board is committed to closing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery.” stated the company.

The settlement calls for Elon Musk to pay a $1 billion fine. (approximately BRL 5.2 billion) if the contract is breached or the matter becomes a legal dispute. Twitter may also pay the same termination amount in specific circumstances.

The announcement of the withdrawal of the richest man in the world takes place three months after he reached an agreement with Twitter’s board of directors to buy the social network for US$ 44 billion, around R$ 231 billion at the current price.

fake accounts

The information about Musk’s possible withdrawal has been circulating for some time. and was made official this Friday. Elon had been questioning Twitter about the number of fake and spam accounts, and had previously threatened to back out of the purchase if he couldn’t do his own analysis.

The social network says that fake profiles represent less than 5% of its user base. But Musk counters and says that his partial analysis based on data provided by the company itself shows that this number is much higher.

Twitter claims to remove over a million

economy and market
08 Jul

twitter eats

07 Jul

“Musk’s advisors’ preliminary analysis of the information provided by Twitter to date makes Musk strongly believe that the protection of fake and spam accounts included in the reported user count is much higher than 5%,” the billionaire’s lawyers said in a statement. letter sent to the SEC.

The document sent to the SEC also alleges that Twitter did not provide all the data that, in Musk’s assessment, would be necessary to finalize the negotiation. The social network, in turn, counters and claims that all the necessary data has been made available.

Now, the matter must be judicialized and we can only wait for the next chapters.

Original text (07/08/2022)

The Twitter Sale Deal to Billionaire Elon Musk Could Be at serious risk of not being implemented. This is because the numbers on the social network indicate that it is not possible to verify how many accounts are spam and robots.

The information was confirmed by more than one source to the Washington Post by people who have access to the billionaire.

Elon Musk’s deal to buy Twitter is in serious jeopardy as the billionaire’s group has concluded that Twitter’s numbers on spam accounts are unverifiable.

Musk’s team has even stopped negotiating financing for the $44 billion deal, including with a major bank. People spoke on condition of anonymity due to the sensitivity of ongoing discussions.

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The information that it is not possible to verify which accounts are real and which are spam or robots is yet another twist in the “soap opera” involving the purchase of Twitter. That’s because Musk’s team will now seek to shift focus to re-pricing the social network.

Dan Ives of consultancy Wedbush said there are now three paths ahead, but the probability of the deal closing on original terms at a share price of $54.20 on a total value of $44 billion is now less than 5%. .

In the view of most market analysts, Musk should suggest a price per share between $42 and $45 or simply file a court battle to cancel the deal.

The contract says there is a $1 billion fine if one of the parties backs out of the deal. The only exception is in case of legal problems and it is precisely in this clause that Musk’s lawyers will try to fit the numbers of bots on Twitter.

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