• News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
MSME Africa
  • News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
No Result
View All Result
  • News
  • Business
  • Opportunities
  • Articles & Resources
  • Spotlight
  • Views
    • Interviews
    • Opinions
  • MSME Jobs
  • More
    • Africa
    • World
  • webmail
  • Terms of Use
No Result
View All Result
MSME Africa
No Result
View All Result

Elon Musk aborts $44B Twitter takeover, to face Legal Actions

Victor Odeyemi by Victor Odeyemi
July 10, 2022
in News, Tech, World
0
Elon Musk aborts $44B Twitter takeover, to face Legal Actions
Share

Tesla CEO and billionaire, Elon Musk declared on Friday that he was abandoning his $44 billion acquisition offer for Twitter because the social media industry had violated numerous merger agreement provisions.

Bret Taylor, the chairman of Twitter, said on the microblogging site that the board intended to file a lawsuit to enforce the merger deal.

The Board is committed to executing the transaction in accordance with the terms and conditions outlined in the contract with Mr. Musk, he wrote.

The social media platform has allegedly ignored or refused to respond to multiple requests for information on bogus or spam accounts on the site, which is crucial to the company’s operation, according to Musk’s lawyers, who claimed this in a document.

Twitter appears to have made false and misleading assertions that Elon Musk relied upon when signing the Merger Agreement, and as a result, is in serious violation of several conditions of that Agreement, according to the petition.

Musk may also be subject to a $1 billion exit penalty, which he is hoping to avoid by accusing Twitter of a “breach of various provisions,” in a letter submitted to the Securities and Exchange Commission announcing the cancellation of the offer.

For almost two months, Musk has reportedly been searching for the data required to “perform an independent assessment of the number of fraudulent or spam accounts on Twitter’s network” for almost two months. Twitter “has either been unable or unwilling to share this information.”

Contested mergers and acquisitions brought before Delaware courts often result in the corporations renegotiating agreements or the acquirer paying the target a settlement to withdraw rather than a judge ordering the deal to be completed. This is due to the target organizations’ frequent desire to put an end to any uncertainty over their future and advance.

Twitter, meanwhile, is reportedly hoping that legal proceedings would start in a few weeks and end in a few months, according to a person familiar with the issue.

Twitter’s shares increased when Musk bought stock in the company in early April, shielding it from a major stock market sell-off that damaged other social media companies.

But after he made the decision to buy Twitter on April 25, the share price fell sharply as investors feared Musk may back out of the arrangement. The price of Twitter’s stock dropped to its lowest point since March after the bell on Friday.

The announcement marks the beginning of a new chapter in the will-he-won’t-he saga that began when Musk announced his intention to buy Twitter in April but postponed the transaction until the social media site could demonstrate that spam bots account for less than 5% of its entire user base.

Some employees on Friday seemed to be making comments about the split by openly sharing memes on Twitter, such as pictures of a rollercoaster and a baby yelling into a phone.

Several employees have expressed doubt about Musk’s plans to relax content moderation because they are concerned about what the merger will imply for their jobs, salary, and ability to work remotely.

Post Views: 8
Share

Related Posts:

  • Top 15 Social Media Marketing Tools for Nigerian Entrepreneurs
    15 Social Media Management Tools That Will Make Life…
  • MSME Africa Unveils Top 50 Remarkable MSME Founders 2023, Awards them $25,000 in Media Credits
    MSME Africa Unveils Top 50 Remarkable MSME Founders…
  • Elon Musk’s X in Talks for New Funding at $44 Billion Valuation
    Elon Musk’s X in Talks for New Funding at $44…
  • Best Cities to live as an Entrepreneur in Nigeria
    Ultimate 2024 Guide to the Top Business Enabling…
  • Africa must prepare for the inevitability of a global food crisis - Akinwumi Adesina
    Overcoming Binding Constraints to Competitive…
  • How Small Businesses Can Boost Sales on Black Friday
    How Small Businesses Can Boost Sales on Black Friday
Tags: Elon MuskSocial mediaTwitterTwitter Deal
Previous Post

GIZ, EFInA to bridge MSME Financing Gap with Hackathon Challenge

Next Post

Jumia partners with Smartphone Company, targets 11 African Countries

Next Post
Jumia partners with Smartphone Company, targets 11 African Countries

Jumia partners with Smartphone Company, targets 11 African Countries

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result
Join MSME on Whatsapp
Subscribe To Our Newsletter
Enter your email to receive a weekly round-up of our best posts. Learn more!
icon
By subscribing, you agree with our privacy policy and our terms of service.

Recent Posts

  • Meta’s Exit Threat Puts Over Half of Nigerian MSMEs at Risk
  • Poor Infrastructure, Logistics Hinder African SMIs from Benefiting Fully from AfCFTA
  • JA Africa and Boeing Launch Youth-Focused STEM and Entrepreneurship Programmes in Nigeria, Togo
  • Nigeria’s Business Confidence Rises to +12.29 in April, but Structural Constraints Persist
  • OPay’s Security Questions Are Back and Smarter Than Ever

Recent Comments

  • 10 Reasons Why SMEs Should Invest in Video Marketing - MSME Africa on How to Create Viral Videos for Social Media in 2024
  • link alay4d on 5 Nigerian-based Companies Providing Accelerator Programs for Startups in 2024
  • Damilare Oladeji on Nigerian Government Agencies that Support Entrepreneurship in 2024
  • situs alay4d on 50 Best Tools to Boost Your Productivity as an Entrepreneur in 2024
  • Otabor Osayomore Blessing on Ultimate 2024 Guide to the Top Business Enabling Cities for Startup Founders and Entrepreneurs in Nigeria
  • About us
  • Advertise with us
  • Contact Us
  • Home
  • News
  • Newsletter
  • Submit News
  • Terms of Use

© 2023 MSME Africa - All rights reserved.

No Result
View All Result
  • About us
  • Advertise with us
  • Contact Us
  • Home
  • News
  • Newsletter
  • Submit News
  • Terms of Use

© 2023 MSME Africa - All rights reserved.