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The legal battle between Twitter and the world’s richest person, Elon Musk, is finally over.
Musk has agreed to go through with his proposed purchase of the social media giant at the original agreed-upon price of $54.20 per share. The platform is being sold for $44 billion.
— New York Post (@nypost) October 4, 2022
Back in May, the deal was put on hold as Musk argued that spam/fake accounts were far greater than the 5% initially claimed by Twitter.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk tweeted on May 13, adding, “The bots are angry at being counted.”
Bloomberg: Elon Musk is moving forward with his Twitter purchase
Live look at Woke HQ realizing their Teslas are now funding the takeover: pic.twitter.com/rvmYdxU7LM
— End Wokeness (@EndWokeness) October 4, 2022
Twitter CEO Parag Agrawal argued it was not possible for Twitter to determine which accounts are fake “on any given day.”
Musk’s lawyer alleges that Twitter was “in material breach of multiple provisions” of the company takeover.
— Bloomberg (@business) October 4, 2022
The deal was terminated by Musk at the time. Twitter argued the terminate was “invalid and wrongful.”
“Our actual internal estimates for the last four quarters were all well under 5% – based on the methodology outlined above. The error margins on our estimates give us confidence in our public statements each quarter,” Agrawal said.
“Unfortunately, we don’t believe that this specific estimation can be performed externally, given the critical need to use both public and private information (which we can’t share),” he added.
“Externally, it’s not even possible to know which accounts are counted as mDAUs on any given day.”
Ultimately, Musk made the final offer in a letter to Twitter.
— Kailey Leinz (@kaileyleinz) October 4, 2022
More on this story via Western Journal:
Bloomberg said the sources for its report were “people familiar with the matter, who asked not to be identified discussing confidential information.”
Trading of Twitter shares was halted after the report emerged, according to CNBC.
After trading resumed, Twitter stock went up 12.7 percent to $47.93 per share before trading was halted again, according to Reuters.
The latest turn of events is part of a twisting saga that began with Twitter initially opposing Musk’s purchase, later agreeing to sell the social media giant to Musk for $44 billion.
In July, Musk said he wanted out of the deal, claiming that Twitter did not provide him with enough information, so he could judge for himself the extent of its fake accounts, which Twitter claimed were about 5 percent and Musk estimated were much higher.
Twitter responded by suing Musk.
“Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests,” Twitter said in the lawsuit, according to The New York Times.
“Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value and walk away.”