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Twitter, Elon Musk deal ‘explained’

Elon Musk’s offer to buy Twitter was initially met with resistance.

In fact, Twitter evoked a “poison pill” provision to stop Musk from forcibly buying the company.

Eventually the company accepted the offer – a deal that Musk greeted with a one word tweet. “Yesss!!!”

Elon Musk threatens to end Twitter deal

A few weeks later though, Mr Musk appeared to have developed buyer’s remorse. Having done all the running, having got what he wanted, he now had some questions.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users” he tweeted..

Mr Musk was arguing that Twitter had no way of verifying how many of its 229m daily active users were actually human.

Elon Musk has threatened to walk away from his $44bn takeover of Twitter, accusing the social media company of “thwarting” his requests to learn more about its user base.

In a letter filed with regulators, Mr Musk said he was entitled to do his own measurement of spam accounts.

The letter formalizes a dispute that has simmered for weeks after Mr Musk declared the deal “on hold” pending further information.

Twitter has defended its estimates.

But Mr Musk has said he believes spam and fake accounts represent a far greater share than the less than 5% of daily users that Twitter reports publicly.

Twitter defends its estimates

“As Twitter’s prospective owner, Mr Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership and to facilitate his transaction financing. To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model – its active user base,” lawyer Mike Ringler wrote in the letter.

Twitter’s CEO, Parag Agrawal, answered back with a 13-tweet thread – publicly stating that fewer than 5% of its accounts were bots.

The head of Twitter has hit back after Elon Musk said his $44bn deal to buy the platform was “on hold” while he sought details about fake accounts.

In a series of tweets, Parag Agrawal defended the firm’s estimates that spam accounts were less than 5% of users.

Mr Musk responded with a poo emoji, later repeating his claim that Twitter was underestimating the figure.

Elon Musk ends Twitter deal

Elon Musk is seeking to end his $44bn (£36bn) bid to buy Twitter, alleging multiple breaches of the agreement.

The announcement is the latest twist in a long-running saga after the world’s richest person decided to buy Twitter in April.

Mr Musk said he had backed out because Twitter failed to provide enough information on the number of spam and fake accounts.

Twitter sues Elon Musk

Twitter is suing Elon Musk to try to force him to buy the social media firm, setting up a legal battle with the world’s richest man, BBC says.

This comes after Musk announced he was walking away from his proposed $44bn (£37bn) takeover of Twitter on Friday, claiming Twitter had not given information about the number of fake and spam accounts on the platform.

Now Twitter has asked a Delaware court to order Mr Musk to complete the merger at the agreed $54.20 per Twitter share.

Twitter Chairman, Bret Taylor confirms the lawsuit in a tweet.

Twitter had requested a September trial because Mr. Musk was due to complete his deal to buy the company by Oct. 24. Mr. Musk’s lawyers proposed a February date for a trial instead, noting that the deal deadline automatically extends in the event of litigation. The banks that have committed to help fund the deal have promised that financing through April 25, 2023.

Twitter and Mr. Musk are scheduled for a hearing on the case on Tuesday at Chancery Court in Delaware, where the company filed its lawsuit against the billionaire. The chancellor of the court, Kathaleen St. J. McCormick, has been assigned to oversee the case, and will decide whether to speed the case along, as Twitter has requested, or delay it for Mr. Musk.

If the suit moves to trial, Judge McCormick will determine whether Mr. Musk must close the deal. She could also let Mr. Musk walk away while forcing him to pay damages. By many readings of Twitter’s contract with Mr. Musk, damages would be capped at $1 billion. The two sides might also settle or renegotiate the deal.

Twitter has lost about a third of its value since Mr. Musk signed the deal to buy the company for $54.20 a share. 

Writing by Omotola Oguneye