The Cryptos News | Daily Bitcoin News
  • Home
  • News
  • Market Cap
  • Top Cryptos
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
    • Cardano (ADA)
    • Solana (SOL)
    • Tether (USDT)
    • XRP (XRP)
    • Polkadot (DOT)
    • Dogecoin (DOGE)
    • USD Coin (USDC)
  • Prices
  • Wallet
  • Crash
  • Investment
  • Exchange
  • Mining
  • Trading
  • Home
  • News
  • Market Cap
  • Top Cryptos
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
    • Cardano (ADA)
    • Solana (SOL)
    • Tether (USDT)
    • XRP (XRP)
    • Polkadot (DOT)
    • Dogecoin (DOGE)
    • USD Coin (USDC)
  • Prices
  • Wallet
  • Crash
  • Investment
  • Exchange
  • Mining
  • Trading
The Cryptos News | Daily Bitcoin News
No Result
View All Result
Home Exchange

Musk can’t blame bots to get out of the Twitter deal

Share on FacebookShare on Twitter


Elon Musk doesn’t want to own a company with a spam bot problem. And now, he’s claiming that he has the right to bail on his Twitter takeover because the company won’t give him the data he wants on the issue, according to a Securities and Exchange Commission filing.

But finance and securities law experts said the claim won’t actually get him out of the Twitter deal — and may set him up for a legal battle.


Musk claims Twitter denied him information about the number of spam bots on the platform, which would violate the terms of the merger agreement that entitles him to information for “any reasonable business purpose related to the consummation of the transaction.” His letter states that Twitter needs to give Musk data about Twitter’s bot and spam accounts so he can conduct his own analysis of the issue.

“As Twitter’s prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership and to facilitate his transaction financing,” the letter, signed by Skadden attorney Mike Ringler, states. “To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model — its active user base.”

Now, Twitter has 30 days to cure breach, meaning the company can give Musk the information he’s requesting about spam bots. But experts said no matter what, Musk’s letter won’t actually get him out of the deal.

“Musk does not have any ground to stand on to void the agreement that he signed,” David Kass, a finance professor at University of Maryland’s business school, told Protocol.

Kass said Musk has two ways out of the acquisition: One would be a regulatory holdup, which doesn’t look likely now that the FTC’s window to intervene has closed. The other would be if Musk doesn’t gather enough debt funding for the deal to happen, in which case he’d pay Twitter $1 billion and break up with the company once and for all.

So if the letter won’t help him end the deal, Musk could be setting himself up for a court battle, in which case Musk could try to lower the price of the deal, according to Adam Pritchard, a securities law professor at University of Michigan’s law school. Tech stocks overall have plunged, and Musk has likely realized that $44 billion is a lot more than Twitter is actually worth right now.

“It’s not like the understanding of the business has changed,” Pritchard told Protocol. “It’s just that stock market valuations have gone south and he’s just paying way too much for this company now.”

Musk is digging himself into a hole. It would take a lot to get Twitter to lower the price of the deal, and it’s already reiterated that his new letter won’t change anything.

“Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement,” the company said in a statement Monday. “We intend to close the transaction and enforce the merger agreement at the agreed price and terms.”





Read More:Musk can’t blame bots to get out of the Twitter deal

Tags: acquisitionblameBOTSDealElon MuskMuskSpamTwitter
Previous Post

‘WeCryptoEco’ Opens the World’s Largest Solar Powered Farm to NFT Holders

Next Post

Crypto Winter: A Brief History of the Boom and Bust Cycle

Related Posts

How to Trade Forex Completely Anonymously

How to Trade Forex Completely Anonymously

by The Cryptos News
July 30, 2022
0

High-profile investors used to save anonymous trading for special occasions. But now that cryptocurrencies are more widely used in...

Russia Has Received Over $2 Million in Cryptocurrency Donations, Chainalysis Says

Russia Has Received Over $2 Million in Cryptocurrency Donations, Chainalysis Says

by The Cryptos News
July 30, 2022
0

What’s sauce for the goose is sauce for the gander —the Russians told the Ukranians. On July 29, Chainalysis...

Crypto Compensation? Bitcoin Bonus? New York State Employers Must Weigh Requests Carefully

Crypto Compensation? Bitcoin Bonus? New York State Employers Must Weigh Requests Carefully

by The Cryptos News
July 30, 2022
0

If your staff member wants his or her paycheck in cryptocurrency, should you – as an employer keeping up...

New to The Street TV / Newsmax TV announces This Week’s TV Broadcast Line-up, Episode

New to The Street TV / Newsmax TV announces This Week’s TV Broadcast Line-up, Episode

by The Cryptos News
July 29, 2022
0

NEW YORK, July 29, 2022 (GLOBE NEWSWIRE) -- FMW Media’s New To The Street / Newsmax TV show announces...

Next Post
Crypto Winter: A Brief History of the Boom and Bust Cycle

Crypto Winter: A Brief History of the Boom and Bust Cycle

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trending News

Payperless Crypto Wallet announced working on NFT tokens support

Payperless Crypto Wallet announced working on NFT tokens support

June 25, 2022
June’s Red-Hot Inflation Report Rattled Bitcoin and Ethereum Prices. What That Means for

June’s Red-Hot Inflation Report Rattled Bitcoin and Ethereum Prices. What That Means for

July 14, 2022
Ripple’s Counsel Urges US Lawmakers to Urgently Pass ‘Sensible’ Crypto Legislation Amid

Ripple’s Counsel Urges US Lawmakers to Urgently Pass ‘Sensible’ Crypto Legislation Amid

July 30, 2022
ADVERTISEMENT

Investment

Buying Bitcoin on the Dip? 3 Things the Smartest Investors Know About Crypto | The Motley

Buying Bitcoin on the Dip? 3 Things the Smartest Investors Know About Crypto | The Motley

July 30, 2022
Study up and become a more informed crypto investor with this bundle

Study up and become a more informed crypto investor with this bundle

July 30, 2022
Crypto Exchange KuCoin Launches NFT ETFs By Benzinga

Crypto Exchange KuCoin Launches NFT ETFs By Benzinga

July 30, 2022
Is It Right Time To Invest In Crypto Market? Crypto Expert Shares Bullish Indicator

Is It Right Time To Invest In Crypto Market? Crypto Expert Shares Bullish Indicator

July 29, 2022
$ETH-Based Investment Products Leading Bounce-Back in July, Says CryptoCompare Research

$ETH-Based Investment Products Leading Bounce-Back in July, Says CryptoCompare Research

July 29, 2022

Prices

Latest Report Shows Cryptojacking Increased By 30% During The Crypto Slump

Latest Report Shows Cryptojacking Increased By 30% During The Crypto Slump

July 30, 2022
Tron price prediction as Unifi Protocol TVL explodes

Tron price prediction as Unifi Protocol TVL explodes

July 30, 2022
Bitcoin and Ethereum Prices Are As High As They’ve Been Since June Crypto Crash, But

Bitcoin and Ethereum Prices Are As High As They’ve Been Since June Crypto Crash, But

July 30, 2022

Crypto Flipsider News – Crypto Market Rally; Nirvana (NIRV) Exploited; Vasil Delayed;

July 29, 2022

Trading

CoinFLEX: Amid liquidity crisis, the cryptocurrency exchange had this to say

CoinFLEX: Amid liquidity crisis, the cryptocurrency exchange had this to say

July 30, 2022
SEC Chairman Publishes Video Outlining Plan to Regulate Crypto Trading Platforms –

SEC Chairman Publishes Video Outlining Plan to Regulate Crypto Trading Platforms –

July 30, 2022
Analysis | Why the Crypto World Flinches When the SEC Calls Coins Securities

Analysis | Why the Crypto World Flinches When the SEC Calls Coins Securities

July 29, 2022
FTX wins full approval to operate crypto exchange in Dubai

FTX wins full approval to operate crypto exchange in Dubai

July 29, 2022
Crypto exchange Zipmex files for bankruptcy protection in Singapore

Crypto exchange Zipmex files for bankruptcy protection in Singapore

July 29, 2022
  • About Us
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA

© 2021 Thecryptosnews.com

No Result
View All Result
  • Home
  • News
  • Market Cap
  • Top Cryptos
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
    • Cardano (ADA)
    • Solana (SOL)
    • Tether (USDT)
    • XRP (XRP)
    • Polkadot (DOT)
    • Dogecoin (DOGE)
    • USD Coin (USDC)
  • Prices
  • Wallet
  • Crash
  • Investment
  • Exchange
  • Mining
  • Trading

© 2021 Thecryptosnews.com

wpDiscuz