In short, the terms of the deal between Musk and Twitter were as follows. On April 25, it was announced that the parties had reached a deal that would allow Musk to own 100 percent of Twitter. All he had to do was pay $ 54.20 for each share of Twitter, which was worth about $ 44 billion. Elon arranged funding for the deal and the board approved it. Elon then threw a wrench at work.
For some reason, Elon came up with the idea that 20 percent of Twitter accounts are bots. This prompted him to ask Twitter’s CEO to check the number of bots. This prompted the CEO of Twitter to explain in detail how he handles bots on his platform. He published a long blog post on the thorny issue, and also a tweet thread on combating spam. This did not satisfy Elon, as he said that the CEO could not prove it was five percent, as the company said earlier. Therefore, the deal was canceled, according to Elon. “My offer was based on the accuracy of Twitter documents in the SEC. Yesterday, the CEO of Twitter publicly refused to show evidence of <5%. This deal can't go on until he does. " he tweeted.
This prompted the company’s board of directors to respond. IN proxy statement filed with the SEC, the board said it plans to continue the deal despite its concerns. It said: “Twitter is committed to completing the transaction at the agreed price and terms as soon as possible.” CNN received a statement from the Twitter board that it was time for Elon to pull out his checkbook. “The board and Mr. Musk agreed on a deal at $ 54.20 per share. We believe that this agreement is in the best interests of all shareholders. “We intend to close the deal and implement the merger agreement,” the statement said. This seems like a glaring legal threat to Elon if he tries to withdraw from the deal, as it is written.
Industry analysts believe Musk’s stomach, which hurts from bots, is an attempt by him to reduce the purchase price. Although Musk’s $ 54.20 share offer was generous in April, it is exceptional generous now, as shares fell amid the heady days in early April when Musk bought a nine percent stake in Twitter. It remains to be seen whether Elon will complete the deal in its current form. For now, the ball is in his court.