Monday, Jul 11, 2022, 19:02 Economy

Elon Musk Attempts To Break Twitter Deal – Who Will Own Twitter?

Elon Musk's plans to purchase twitter and to adapt the service to his preferences have captured the attention of the modern world, and the tech/news media in particular. However, as early as the middle of May, the deal seemed to have begun treading on thin ice – with our controversial entrepreneur, Musk casting doubt on Twitter's claims that less than 5% of monetized traffic on the site comprises of spam material automatically dispensed by bots. The Tesla CEO has asked for the social media network to provide proof of these numbers. Now, Musk has faltered on his end of the deal and no voiced that he no longer wishes to proceed with the takeover, as per Reuters. On the other hand, it doesn't seem as if Twitter will let him walk away so easily after having already signed the contract.

Musk Rescinds Agreement – Twitter Reiterates To Signed Deal
The big question is whether or not the allegations on Musk's end concerning a large, unaccounted for number of fake accounts on the Twitter platform hold any salt. The "rocket man's" lawyers point to inadequate indications from Twitter – allegedly the social media company failed to comply with several aspects of the acquisition agreement; and there's reason to assume that the number of fake accounts is actually higher than that which the service has currently expressed. Musk's legal team is trying to make the argument that Twitter has yet to provide any sufficient proof for their claims concerning the service's active user base. The lawyers then go on to accuse Twitter of a breach of contract, and on these grounds – they hope to nullify the purchase agreement. The return argument summarizes the matter differently: Chairman of Twitter's board Bret Tayler, claims only the intent to hold the opposite end of the table to the agreed upon deal. To achieve this, the company is ready to let the matter play out in court, forcing Musk into an open, legal confrontation to resolve the matter.

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A Years Long Court Battle?
Twitter and Musk agreed upon a fine of one billion dollars, should one either of the two parties rescind on their end of the deal. Now, there's the threat of a legal battle concerning the matter – and one which could take place over the course of several years. Musk would need to present adequate information to convince the respective court, the Delaware Chancellory Court, of Twitter's (thus far alleged) embezzlement of meaningful information – and to such an extent that it would be seen as a violation of their contractual agreement with Musk. There's a lot at stake for the microblogging service, after all, the estimated price of Musk's takeover is US$44 billion.

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