Elon Musk warned on Monday that he may withdraw from purchasing Twitter if he does not receive spam data and the number of fake accounts. In response to this, the stocks of companies depreciated.
Head of Tesla and SpaceX Elon Musk in the letter, he reiterated his request for bot details and stated that he reserves all rights to withdraw from the merger because the company “clearly breached” its obligations by failing to provide him with this information.
Elon Musk threatens not to buy Twitter
The Reuters agency noted that Musk had first threatened to withdraw from the deal in writing rather than via a Twitter post. “Musk believes that Twitter is explicitly refusing to fulfill its obligations under the merger agreement, giving rise to further suspicions that the company is hiding the requested data,” the letter reads.
In response to this, we observe the decline in Twitter shares during the Monday session. Around 17.20 Polish time, shares lost over 3 percent. One had to pay almost 39 dollars. While the takeover bid predicts the billionaire will pay $ 54.20 per share. The acquisition value is $ 44 billion.
Earlier in May, Musk tweeted that his contract was “temporarily suspended pending details to confirm the calculations that spam / fake accounts actually account for less than 5% of users.” In another entry, the billionaire assured that he was “still interested in the takeover”.
Musk would have to pay $ 1 billion if he had withdrawn from the deal for reasons that were not provided for in it.
According to Twitter data, at the end of 2021, the platform was used by 217 million active users every day. The company generated over $ 5 billion in revenue, but recorded a net loss of $ 221 million.
The estate of Elon Musk
Currently, Musk has 9.6 percent. shares in Twitter and is the second largest shareholder. According to the Bloomberg Billionaires Index, the estimated fortune of the head of Tesla and SpaceX is $ 211 billion. He is by far the leader of the list of the richest people in the world. The Bloomberg Billionaires Index is a ranking of the richest people in the world. It is updated every day after the listing on the New York Stock Exchange is closed.
The second is Jeff Bezos with assets valued at $ 146 billion. Bernard Arnault is on the lowest step of the podium – 137 billion dollars.
Main photo source: Shutterstock