Donald Trump has written: “THE TWITTER DEAL IS DEAD, LONG LIVE THE “TRUTH”,” gleefully celebrating Elon Musk’s decision to abandon his attempt to acquire Twitter.
On his own competing social network Truth Social, the former president posted his opinions on Friday evening, just after it was revealed that Musk, 51, had withdrawn a $44 billion offer.
Trump’s post on Truth, where he has 3.5 million followers, received close to 37,000 likes and more than 9,000 shares.
After being suspended by former Twitter CEO Jack Dorsey in January 2020, just days after the Capitol riots, he created the Twitter clone.
Compared to Twitter’s 300 million users, Truth Social has an estimated two million active users.
The world’s richest man, Elon Musk, stated on Friday that he was ending his offer to purchase Twitter at a price of $54.20 per share. This enraged the company’s executives, who said they would file a lawsuit to make the sale go through.
In a letter stating that he was breaking the agreement, Musk accused Twitter executives of refusing to provide information regarding the amount of bogus users on its website.
The social media juggernaut received harsh criticism from the billionaire for failing to “comply with its contractual responsibilities” throughout the acquisition process.
Additionally, he asserted that the company’s hiring freeze and senior employee firings over the previous two months prevented it from conducting business as usual.
Following Musk’s decision to withdraw from the agreement, Twitter shares ended at $36.81 on Friday, leading to rumors that Musk is still attempting to buy the company, but at a far lesser price than he had originally proposed.
On Saturday in Sun Valley, Utah, at the so-called Billionaires’ Summer Camp, Musk is scheduled to give a speech.
Although it is still unknown if the two have already met, Twitter CEO Parag Agrawal is also present at the tycoons’ meeting.
Musk’s lawyer at Skadden Arps, Mike Ringler, claimed that Twitter was in serious breach of a number of the terms of the agreement in a letter to the Securities and Exchange Commission informing them of Musk’s decision to withdraw his offer for the company.
“Mr. Musk is terminating the Merger Agreement because Twitter is materially in breach of numerous provisions of that Agreement, appears to have made false and misleading representations on which Mr. Musk relied when entering into the Merger Agreement, and is likely to experience a Company Material Adverse Effect,” wrote Ringler.
Twitter has not met with its contractual responsibilities, despite the fact that Section 6.4 of the Merger Agreement states that Twitter must give Mr. Musk and his advisors any data and information they seek “for any reasonable business purpose relevant to the closing of the deal.”
Mr. Musk has been looking for the data and information required to “conduct an unbiased assessment of the incidence of false or spam accounts on Twitter’s network” for almost two months.
This information is essential to Twitter’s operations and financial health and is required to complete the transactions envisioned by the Merger Agreement because it’s required to make sure Twitter satisfies the closing conditions, to make Mr. Musk’s financing and financial planning for the acquisition easier, and to engage in transition planning for the company.
Twitter has either been unable or unwilling to offer this information. Twitter has at times disregarded Mr. Musk’s demands, at other times rejected them for what seem to be illogical reasons, and at still other times pretended to cooperate while providing Mr. Musk with information that was either insufficient or useless.
Musk had previously threatened to cancel the agreement unless the company could demonstrate that less than 5% of members on the social media platform were made up of spam and bot accounts.
However, Twitter vowed to sue right away and expressed confidence that it would prevail.
“The Twitter Board is dedicated to finalizing the acquisition on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” Taylor wrote in a tweet.
We’re sure we’ll win in the Delaware Court of Chancery, we say. Later, CEO Agrawal retweeted that statement.
Given that this is an active legal case, you should refrain from Tweeting, Slacking, or providing any commentary concerning the Merger Agreement, according to an internal memo from Twitter’s general counsel.
An anonymous Twitter employee told NBC News that Musk had “f**king wrecked the company” in response to the failed transaction.
The worker remarked, “I suppose it seems like we won.
However, it has the feel of the film’s climax, when Michael Bay’s explosion is behind the characters and they are covered in blood. Although we could see this coming, he has already completely wrecked the company.
Twitter is renowned for having a woke workforce that has previously come under fire for engaging in censorship in an effort to silence speech they believe to be “damaging.”
Musk declared that he will approach moderation in a much more relaxed manner.
Instead of explicit lifelong bans for egregious behavior, like the one imposed on Donald Trump for allegedly inciting the riots on January 6, he sought to put short restrictions on users.
Musk, who frequents the website, claims he wanted to buy it in order to turn it into a potent tool for free expression.
In an all-hands meeting with staff in April, Agrawal made an effort to calm tensions after staff members asked information on how managers would handle a Musk-inspired mass exodus.
If the Musk deal went through, Agrawal would have made $42 million.
Due to Musk’s decision, the 16-year-old San Francisco-based business and the billionaire are expected to engage in a protracted court battle.
Instead of a judge directing a transaction to be completed, contested mergers and acquisitions that are brought before Delaware courts typically result in the corporations renegotiating agreements or the acquirer paying the target a settlement to withdraw.
This is due to the fact that the target companies are frequently eager to end the uncertainty around their future and move forward.
According to a person familiar with the situation, Twitter, however, is hoping that court procedures will begin in a few weeks and conclude in a few months.
Twitter might offer to sell itself to Musk for less money, or Musk might agree to pay Twitter a compensation for walking away from the transaction, to end the drama.