Twitter stock

2022 - 6 - 6

Post cover — Image courtesy of "MarketWatch"

Twitter stock sinks after Elon Musk says he could 'terminate' the deal (MarketWatch)

Shares of Twitter Inc. fell hit Monday after Elon Musk said he could terminate the merger deal if the social media company continues to refuse to provide ...

“To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model—its active user base.” Musk’s deal to buy Twitter has been viewed by some investors as distracting Musk from running the electric vehicle maker, and could potentially prompt him to sell some of his Tesla shares. In addition, Musk said Twitter must also cooperate with his efforts to secure the financing needed to complete the deal, which includes providing information he “reasonably” requests. Keep in mind Musk had waived his right to perform due diligence on Twitter before agreeing to the merger’s terms. Twitter’s stock had surged 6.4% on the back of that disclosure, and is still trading above where it was before that rally. The Tesla Inc. TSLA,chief executive said Twitter’s offer to provide details on its testing methodologies is the same as refusing his requests.

Twitter Stock: The 1 Huge Challenge Elon Musk Faces (Motley Fool)

Fake accounts and a falling stock price aren't the only concern for Musk at this point.

That might be tough to swallow, even for the richest guy on Earth, especially since Tesla stock has declined by a whopping 40% this year as well. By the end of 2021 Twitter had 214.6 million mDAU, but its year-over-year growth rate had more than halved to 11.8%, from 27% in the prior period. This morning, Musk fired a letter over to Twitter accusing them of failing to provide important data which will help him determine whether the company's claim that fake accounts represent less than 5% of the user base is, in fact, accurate. Based on its recent results, the company is in danger of falling short of its ambitious 2023 targets. And despite having a signed contract, the two parties have been exchanging words after Musk accused Twitter of understating the number of bots and fake accounts on its platform. He's an avid user of short-form social media platform, Twitter ( TWTR -1.64%), and in April he made a blockbuster bid of $54.20 per share to buy the entire company, worth $44 billion.

Elon Musk threatens to drop Twitter deal if fake-account data not ... (The Globe and Mail)

In a letter to Twitter, Elon Musk said the company was in a 'clear material breach' of its obligations and that he reserves all rights to terminate the ...

Twitter can sue for “specific performance” to force Musk to complete the deal and obtain a settlement from him as a result. A self proclaimed free-speech absolutist, Musk has said one of his priorities will be to remove “spam bots” from the platform. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Twitter has disagreed, with Chief Executive Parag Agrawal providing details on how the company handles spam accounts in one of his recent tweets. Be smart with your money. The stock was last down 2%, while Tesla rose 1.2%.

Twitter Stock Falls. Elon Musk Says Refusal on Spam Is Breach of ... (Barron's)

The Tesla CEO and Twitter have been sparring for weeks over what share of traffic on the social-media platforms is spam.

The letter included a threat to walk away from the $44 billion deal if his issues aren’t addressed. Twitter stock was falling Monday. Spam is the reason. Twitter Stock Falls. Musk Says Twitter Refusal on Spam Is Breach of Merger Pact.

Elon Musk Says Twitter's Lack of Info on Bots Breaches Merger Deal (Bloomberg)

Twitter Inc. reiterated that it will hold Elon Musk accountable to the terms of his proposed $44 billion takeover offer after the billionaire again ...

Elon Musk threatens to abandon bid to buy Twitter over fake account ... (CBC.ca)

Elon Musk is threatening to walk away from his $44 billion US bid to buy Twitter, accusing the company of refusing to give him information about how many of ...

It says Twitter is obligated to provide data for any reasonable business purpose needed to complete the deal. It defines that as a change that negatively affects Twitter's business or financial conditions. The letter contends that Musk is not required to explain his rationale for requesting data or submit to "new conditions the company has attempted to impose on his contractual right to the requested data." But they contend that's "tantamount to refusing Mr. Musk's data requests." In the letter, Musk attorney Mike Ringler points to a spat over a June 1 letter from Twitter in which the company said its information obligations are limited to facilitating the closing of the sale. Lawyers for the Tesla and SpaceX CEO made the threat in a letter to Twitter dated Monday. That letter was included in a filing from Twitter with the Securities and Exchange Commission.

Musk threatens to tear up Twitter deal over 'material breach' (Reuters)

Elon Musk warned Twitter Inc on Monday that he might walk away from his $44 billion deal to acquire the social media company if it fails to provide the data ...

This is because any litigation is likely to be protracted, and Twitter may decide it makes more sense to agree to a lower price or receive compensation from Musk rather than try to force him to complete the transaction in court. Twitter has said it stands by its projections and it cannot provide proprietary information on how it produces them. read more He tweeted that the Twitter deal was "temporarily on hold" in mid-May, saying he will not move forward with the offer until the company showed proof that spam bots account for less than 5% of its total users. Twitter responded that it planned to enforce the completion of the deal on the agreed terms. This was not the first time Musk had suggested publicly his acquisition of Twitter may not happen.