Elon Musk successful in bid to buy Twitter

Elon Musk successful in bid to buy Twitter

Twitter accepted Musk’s advances after weeks of negotiations as the two sides strike a deal over the weekend that was made official on Monday. Musk acquired the company for $44 mil USD.

The agreement is the latest twist in the fast-moving saga, which began under a month ago when Musk disclosed in a regulatory filing than he had quietly amassed 73 million shares in the company.

Musk’s plans to take Twitter private and promises to crack down on free speech are still unfolding…

Elon Musk successful

Experts have said Musk can’t unilaterally place the deal on hold, although that hasn’t stopped him from acting as though he can.

If he walks away from the deal, he could be on the hook for a $1 billion breakup fee.

The Twitter sale agreement allows Musk to get out of the deal if there is a “material adverse effect” caused by the company. It defines that as a change that negatively affects Twitter’s business or financial conditions.

Elon Musk successful

In the letter, Musk attorney Mike Ringler points to a spat over a June 1 letter from Twitter in which the company said its information obligations are limited to facilitating the closing of the sale. It says Twitter is obligated to provide data for any reasonable business purpose needed to complete the deal.

Twitter also has to co-operate with Musk’s effort to get the financing for the deal, including providing information that’s “reasonably requested” by Musk, the letter states.

The letter contends that Musk is not required to explain his rationale for requesting data or submit to “new conditions the company has attempted to impose on his contractual right to the requested data.”

It alleges that Musk is entitled to the data about the core of Twitter’s business model so he can prepare the transition to his ownership.

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