Musk argued in a letter that he is within his rights not to finalize the purchase after Twitter failed to provide him with information about the bots.
- The billionaire pointed to a possible cancellation of the purchase plans.
- Musk has been complaining about Twitter spam for some time now.
- With Musk walking away from the deal, DOGE’s Twitter plans go up in smoke.
It seems that the giant social platform a place to buy, sell and store cryptocurrency Twitter won’t have a crypto-friendly owner after all.
The tycoon CEO of Tesla y SpaceX Elon Musk, has hinted at the possibility of canceling the highly anticipated acquisition of Twitter due to problems of “ non-compliance ” por parte de la empresa en cuestión.
In a carta on Monday, Musk’s legal team argued that the entrepreneur was within his rights to withdraw from the deal to purchase Twitter in the amount of USD $44 billion due to a “ clear material breach “ del acuerdo cuando la empresa falló en brindarle datos precisos sobre el spam y la actividad de los bots automated software that can carry out tasks such as cryptocurrency trades. on the platform.
Musk accused the platform of “ resist and frustrate “their right to receive such data and that could “ do not consummate the transaction “due to the alleged breach of contract. The letter, which was addressed to the legal director of Twitter Vijaya Gadde, filed with the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC).
This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all resulting rights, including his right not to consummate the transaction and his right to terminate the merger agreement.
Twitter buyout deal hangs in the balance
As reported by DiarioBitcoin ,Musk hizo una oferta en efectivo para comprar Twitter for $54.20 per share in April, valuing the company at more than $40 billion USD. At the time, he said one of his priorities was to crack down on spam and crypto scams on the platform. The social network’s executives accepted the offer on April 25.
In recent weeks, amid a slump in the shares of major tech companies, Musk has repeatedly complained about the problem of spam on Twitter The deal could be cancelled. Some observers have speculated that this could merely be an excuse for the businessman to escape the deal due to the stock drop that now implies an overvaluation of its initial offer.
In mid-May Musk said he was “ temporarily suspending “ the acquisition until I could verify that less than 5% of the users of the Twitter were false. However, this Monday he has alleged that the platform failed to provide him with accurate data on this issue, and that instead they have only informed him about the methodology they use to measure spam, but not about the actual numbers.
“La última oferta de Twitter de simplemente proporcionar detalles adicionales sobre las propias metodologías de prueba de la compañía, ya sea a través de materiales escritos o explicaciones verbales, equivale a rechazar las solicitudes de datos del Sr. Musk“, se lee en la carta preparada por los abogados de Musk.
Today’s statements, which coincided with a 5% drop in Twitter’s stock appear to be the latest sign that Musk is looking to walk away from the deal.
Musk had plans for DOGE on Twitter
The issue of spam and crypto scams has been of interest to Musk since long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. before his offer to purchase Twitter . At the beginning of the year, he had already criticized the platform by implementing a function of tokens (NFT) before focusing on tackling spam. . At that time, he alleged that the company was “. spending on engineering resources “for a function “ basura “while cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. scammers “ they have a party “. The comments echoed previous ones.
In addition to tackling spam, the billionaire had also previewed some of his other plans to Twitter . Una vez que fuese de su propiedad, Musk dijo que tenía la intención de convertir a la red social en una plataforma descentralizada de código abierto. Además, había apuntado a la posibilidad de incorporar Dogecoin (DOGE), their cryptocurrency of choice, for subscription payments of Twitter Blue a more exclusive service of Twitter and other functions of the platform.
The acquisition had generated great optimism among some digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. enthusiasts, especially DOGE, because of these adoption plans. Even the founder of Twitter Jack Dorsey, who is a strong advocate for Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. had blessed Musk’s take, and crypto exchange Binance had invested to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the acquisition .
These plans related to crypto adoption in Twitter now appear to be far from certain, with Elon Musk walking away from the deal.
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Article by Hannah Estefania Perez / DiarioBitcoin
Image by Nicole León (https://nicoleleon.design) edited in Canva