August 13, 2022

Wire Service Canada

Complete Canadian News World

Elon Musk has given up on buying Twitter

in message Billionaire Elon Musk, who on Friday sent to the SEC, the company that controls the US stock exchange, announced that he wants to abandon the purchase of the social network Twitter. Musk made an offer last April, but he hasn’t completed it yet.

In the letter to the Securities and Exchange Commission, Musk accused Twitter of not respecting the obligations of the agreement signed in April and unwilling to provide him with the information he requested regarding the number of fake (often automated) accounts on the social network. . Twitter estimated the number of fake accounts at about 5 percent of the total, but according to Musk, that number would not be credible, and therefore required access to data held by the company before completing a purchase.

musk He was officially committed To acquire Twitter at the end of last April, by submitting an offer of $44 billion to the Securities and Exchange Commission, and effectively committing itself to the financial deal. At first, the social network’s board of directors showed that it wanted to oppose the acquisition, but then gave its consent message Musk defined his show as “the last and best period.”

However, in the following weeks, the process experienced several slowdowns, mainly due to Musk’s repeated threats to abandon the purchase if Twitter did not clarify the number of fake accounts. The CEO of the company, Parag Agrawal, However, he answered That Twitter could not hand over account data to Musk because that would have involved sharing important personal user data with parties outside of Twitter.

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But according to many international analysts, the controversy over fake accounts will in fact be just an excuse for Musk to exit the deal without having to pay fines: according to agreements with the company’s board of directors, if Musk decides to withdraw from the deal he will have to pay a fine of $1 billion. In fact, many have long believed that Musk had changed his mind about buying Twitter, which was largely covered by a series of loans from banks and investors, and would consider the process to be no longer sustainable due to the difficult situation in global financial markets.

After the announcement on Friday, Twitter CEO Brett Taylor said the company wanted to complete the sale within the terms set out in the agreement in April, and that it would also act legally to enforce contractual obligations. musk.