The IT Nerd

You might recall that Elon Musk’s attempt to buy Twitter hit a snag of sorts when he questioned the amount of bots on the the platform. Which tied into suggestions that Musk was looking for an off ramp from the deal. Today we have more evidence that he might be looking for that off ramp. Yahoo Finance is reporting this:

In an SEC filing released Monday morning, Musk’s counsel said Twitter has not coughed up adequate data on the company’s users, committing a “clear material breach” of the company’s obligations as part of its merger agreement.

“Based on Twitter’s behavior to date, and the company’s latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement,” the letter reads. “This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”

If he does terminate the agreement, that will cost him a billion dollars US. Which he likely doesn’t care about. But, if he is able to argue that there has been a material breach, he doesn’t have to pay a dime. Which suggests to me that he was never serious about buying Twitter, and that he’s trying to pull the plug on this and walk away from this without spending a dime. This truly isn’t a surprise to me. I fully expected this sort of chaos the second Musk suggested that he was going to buy Twitter. Which is why the company is better off without him and his sideshow. Though I will also admit that he might get his act together and get serious about this. We’ll have to see which side of the fence that this lands on.

This entry was posted on June 6, 2022 at 11:50 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.