Tag: Twitter Deal

  • Elon Musk says he is buying Twitter to ‘help humanity’, not to make more money

    Elon Musk says he is buying Twitter to ‘help humanity’, not to make more money

    Elon Musk intends to collaborate with advertisers as his $44 billion purchase of Twitter is set to close. Musk reiterates that he is acquiring Twitter because it is a pillar of civilization and that doing so will benefit humanity in a statement to advertisers.

    Musk’s appeal reflects concerns that the platform might turn into a swamp of free-for-all commentary once he acquires it and that numerous people with extreme views could have unlimited access to it. With Musk leading Twitter, there is a chance that many advertisers may decide to abandon the platform.

    Musk guarantees in his note that once he buys Twitter, it wo n’t be free for all. It goes without saying that Twitter cannot devolve into a free-for-all hellhole where anything may be spoken without repercussions.

    “In addition to adhering to the laws of the land, our platform must be warm and welcoming to all,” he tweeted via a note.

    “Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise. To everyone who has partnered with us, I thank you. Let us build something extraordinary together.”

    In the message, Musk highlighted why he is buying Twitter. He says, “The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence,” he writes. “That is why I bought Twitter. I didn’t do it because it would be easy. I didn’t do it to make more money. I did it to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

    It’s the exact explanation Musk initially offered when he first announced his attempt to acquire Twitter for about $44 billion in April of this year. He quickly changed his mind, claiming he was no longer interested in purchasing Twitter because, in his opinion, the platform inflates the number of real, active users.

    Twitter disputed the accusations and sued Musk in court. Later, Musk promised to execute the transaction, and the court ordered him to do so by October 28.

    Elon Musk intends to collaborate with advertisers as his $44 billion purchase of Twitter is set to close. Musk reiterates that he is acquiring Twitter because it is a pillar of civilization and that doing so will benefit humanity in a statement to advertisers.

  • Elon Musk enters Twitter office holding a bathroom sink

    Elon Musk enters Twitter office holding a bathroom sink

    Billionaire Elon Musk entered the Twitter’s San Francisco office on Wednesday with a bathroom sink in his hands, with just a few more days to finalise his acquisition of Twitter and avoid a fresh court hearing.

    “Entering Twitter HQ – let that sink in!” the Tesla and SpaceX CEO tweeted with a video of his entrance.

    Earlier, Musk also changed his bio on Twitter, where he has more than 110 million followers, to “Chief Twit.”

    Musk must finalise the purchase of Twitter by Friday at 5 p.m. Eastern Time, or else he will have to consider going to trial once again.

    When Musk attempted to terminate their $44 billion merger deal, Twitter sued him on the grounds that it had been negligent in disclosing information concerning spam and bots on its network, which he claimed would have a materially negative impact. This was refuted by Twitter.

    After Musk said that he would in fact be prepared to purchase Twitter, a judge in the Delaware Chancery Court set the Friday deadline.

    Twitter wants the court to continue to be engaged because it did not trust Musk’s word. The judge ultimately decided to postpone the trial that had been scheduled for last week and gave the parties until the end of this week to reach a settlement; otherwise, she would schedule fresh trial dates for November.

  • SpaceX fires employees involved in letter criticising CEO Elon Musk

    SpaceX fires employees involved in letter criticising CEO Elon Musk

    Elon Musk’s SpaceX has fired several employees as a result of a letter criticising the vocal billionaire’s public behaviour, according to a message to employees confirmed by AFP on Friday.

    SpaceX chief operating officer Gwynne Shotwell wrote in an email late Thursday that a “small group” of employees sought signatures from their coworkers as a show of support for the letter and participation in a survey.

    The mercurial billionaire uses Twitter on a regular basis to provoke, speak directly to customers and fans, and occasionally offend with unfiltered or crude remarks.

    According to Shotwell’s message, some employees felt “uncomfortable, intimidated, and bullied, and/or angry” because the letter pushed them to sign something that didn’t reflect their beliefs.

    “We have too much important work to do,” she continued, “and we don’t need this kind of overreaching activism”.

    The company “terminated a number of employees involved” after conducting an investigation, Shotwell said, without specifying how many.

    Musk’s public behaviour, as well as recent allegations of sexual harassment against him, were cited in the workers’ letter as “a frequent source of distraction and embarrassment for us,” according to The Verge.

    “Elon is seen as the face of SpaceX as our CEO and most visible spokesperson – every Tweet Elon sends is a de facto public statement by the company,” the letter continued.

    Musk, who also runs Tesla, is in the middle of a roller-coaster $44 billion bid to buy Twitter, which has heightened interest in the investor.

  • Elon Musk threatens to terminate Twitter deal once again

    Elon Musk threatens to terminate Twitter deal once again

    Tesla’s CEO Elon Musk warned Twitter in a statement on Monday that if it fails to give him with data on spam and bogus accounts, he may back out of his $44 billion offer to buy the social media company.

    This isn’t the first time Musk has hinted that his takeover of Twitter might not go through. However, the warning, which came in the form of a letter from Musk’s lawyers to Twitter’s chief legal officer, Vijaya Gadde, signified a significant step forward. It accused Twitter of “materially breaching” its contract commitments.

    Musk’s warnings to rip up the contract have coincided with a drop in many technology equities, including Tesla Inc, the electric vehicle company he runs, as investors worry about an economic downturn and higher interest rates in the face of soaring inflation.

    On Monday, Twitter shares fell 1.5 per cent to $39.57, a significant discount to the planned $52.20 purchase price, as investors wagered Musk will either persuade Twitter to accept a lower deal price or walk away from the deal.

    Musk’s attorneys reaffirmed their request for facts on bot accounts in a letter to Twitter, saying he reserved all rights to cancel the transaction because the business had failed to meet its duties in a “clear material violation”.

    Twitter responded by stating that it intended to enforce the deal’s completion on the agreed-upon conditions. “In order to complete the acquisition in accordance with the terms of the merger agreement, Twitter has and will continue to cooperatively exchange information with Musk,” the firm stated in a statement.

    Musk, a self-proclaimed free-speech absolutist, has stated that removing “spam bots” from the platform will be one of his top goals.

    In mid-May, he announced that the Twitter transaction was “temporarily on hold,” stating that he will not forward with the offer unless the firm can prove that spam bots make up less than 5 per cent of its overall users. He has stated that spam bots account for at least 20 per cent of the user base.

    According to independent analysts, 9 per cent to 15 per cent of the millions of Twitter profiles could be bots.

    Musk wrote in his letter that he needs the information to perform his own analysis of Twitter users because he doesn’t trust the company’s “loose testing techniques.” Twitter has stated that it stands by its forecasts and that it is unable to reveal private information on how they are generated.

    “He’s trying to back out of the Twitter transaction, and this is the first shot across the bow,” according to Wedbush analyst Dan Ives.

    The caveats Twitter employed in its forecasts on spam accounts, according to legal experts, give it some protection against prospective lawsuits, whether from Musk over the transaction or shareholders over the integrity of the company’s regulatory representations.

    Even if Twitter’s estimate is incorrect, Musk would have to establish that the San Francisco-based business was attempting to deceive with the intent to deceive – a high legal bar.

    “It’s quite evident that Musk has buyer’s remorse, and he’s doing all he can to get a price reduction, and I believe he’ll succeed,” Dennis Dick, a proprietary trader at Bright Trading LLC, said.

    To be sure, Musk may be able to walk away or renegotiate the deal even if the law is on Twitter’s side.

    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.

    Several companies renegotiated or walked away from agreed acquisitions when the COVID-19 pandemic broke out in 2020 and delivered a global economic shock.

    In one instance, French retailer LVMH threatened to walk away from a deal with Tiffany & Co. The U.S. jewelry retailer agreed to lower the acquisition price by $425 million to $15.8 billion.

    Musk is contractually forced to pay a $1 billion breakup fee if he cannot complete the sale because the loan financing falls apart or authorities stop it, according to Forbes, a sliver of his $219 billion fortune.

    Last Monday, antitrust officials in the United States opted not to investigate Musk’s acquisition of Twitter any further, indicating that it is unlikely to face regulatory challenges. The deal is still being reviewed by the European Union.

    Attorney General Ken Paxton of Texas stated on Monday that he has launched an investigation against Twitter for “possibly fraudulent reporting regarding its bogus bot accounts,” which he described as a possible violation of state law.

    As part of the investigation, Paxton requested that Twitter provide over documents. “I have a responsibility to safeguard Texans if Twitter is misrepresenting how many accounts are fraudulent to increase their revenue,” Paxton said in a statement.

    Twitter’s filings with the Securities and Exchange Commission, according to a spokeswoman, are accurate.