Elon Musk Wants to Back Out at Twitter Takeover

Elon Musk Wants to Back Out at Twitter Takeover

Here is a twist on the latest Twitter takeover. Remember, Elon Musk bought 9.2% of Twitter stakes last April. As he raised questions about the platform, he then offered to buy it for a $54.20 cash payment per share. Since then, Musk started announcing his big plans for major changes. Unfortunately, Elon Musk wants to back out of the Twitter takeover.

In his letter sent to Twitter’s Chief Legal Officer Vijya Galde, Musk asserted that Twitter breached the merger agreement by failing to provide more insights on fake profiles. Twitter pegged that the number of fake accounts only constitutes 5% of the total Twitter users. But Musk believes that the figure is far too low. Such data is critical in securing financing. As such, he is now intending to pull out of his Twitter takeover bid.

Elon Musk wants to back out at the Twitter takeover on 06 June 2022.

Implications to Marketers:

Twitter is not 90% consisted of bot accounts. But Elon Musk’s analogy that he is buying a house full of termites makes sense. Marketers just have to wait and see how Twitter will accommodate Musk’s request to gain a better insight into how Twitter proves that it only has 5% bot accounts since 2013.

Reference: https://www.sec.gov/Archives/edgar/data/1418091/000110465922068347/tm2217761d1_ex99-o.htm

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