The soap opera Elon Musk and Twitter ends this Friday (20) — but promises to add a few more chapters. According to Reuters, Tesla’s chief executive has officially confirmed the completion of a $44 billion acquisition of the social network. He would cite the withdrawal as a serious breach of several terms of the contract.
There are no details on what may have been breached during the acquisition, however, since signing the purchase agreement, Musk has demanded accurate reporting of the amount of fake or spam material on the platform. While he himself designated a team to do the scan, the team was unable to confirm the exact number.
However, fake user accounts may not be the only reason Musk backed out of the deal and bought the social network. Since announcing its intention to acquire Twitter, the company’s share price has dropped dramatically. This could lead to a possible exit from the billionaire.
In April, the month in which negotiations began, Twitter’s share price was US$50 (R$210), the company was worth about US$32 billion (R$68 billion) and the billionaire’s takeover offer was $44 billion, an increase of about 38%.
Since then, the share price has dropped dramatically and is now valued at US$36 (R$189) for a total of US$29 billion (R$152 billion). Shares were down another 6% on Friday.
Official confirmation that Musk completed the Twitter takeover also came from an official SEC filing released by the US Securities and Exchange Commission, which bears the entrepreneur’s signature.
Brett Taylor’s chairman tweeted that the board would react. Twitter’s board has committed to closing the deal at prices and terms agreed with Mr. Musk also plans to take legal action to enforce the merger deal.
Elon Musk and the chronology of the Twitter case
Elon Musk VS Twitter Memorabilia In early April, Elon Musk acquired 73,486,938 shares of Twitter, equivalent to 9.2% of the company’s total share capital, becoming one of its largest shareholders.
With the deal, Musk was also appointed to the social network’s board of directors. A week later, the executive gave up being a member of the board. Parag Agrawal, the platform’s chief executive, declined to participate in the matter. It simply says that, as board members, business people must “act in the best interests of the company and all of our shareholders.”
Musk’s next step is to file a proposal with the Securities and Exchange Commission to buy all of Twitter for $44 billion and make it private again. According to him, this is his final offer and, if it is not accepted, he may even consider not being a shareholder in the company.
However, he has faced resistance from his board and shareholders – mainly because of concerns that the wealthy will meddle in the social network’s content, making it more vulnerable to misinformation and hate speech.
More recently, falling stock prices and the lack of information Musk needs were decisive factors in closing the acquisition. Twitter executives even submitted an investigation on May 2 into fake profiles and spam, in which a document representing less than 5% of the platform’s existing accounts was false. But the investigation did not convince the Tesla CEO.