Musk writes to call off twitter deal

 Musk writes to call off twitter deal

Musk writes to call off twitter deal

 A 44 Billion dollar deal may be called off by Elon Musk if the data pertaining to fake and spam accounts is not provided, this was stated by musk in his letter written to Twitter Inc. 

The deal is already followed by a huge campaign to stop musk to acquire Twitter and a suit has also been filed earlier.

Therefore any walk-off from the deal by musk would likely serve their purpose while Antitrust has already approved the deal.

Twitter is a very popular social media platform being in use by all especially world leaders, politicians legends, etc and its acquisition can matter a lot for imposing one's own views and idealogues.

Musk in his letter addressed to the company has emphasized that Twitter is not following its obligations and causing a breach of the agreement which may force musk to cancel the agreement.

Earlier musk had been tweeting on the platform for the provision of such information and indicated his reservation but as of now, he has clearly written to the company with the threat to terminate the deal.

Musk's threat was argued by Twitter stating that it is on hold and negotiations are on for the provision of requisite information for preparing the ownership transfer.

While musk had earlier stated that unless the data for spam and fake accounts were not provided, the deal was on hold. 

The letter written to the company stated that the non-provision of such required data has created suspicions as the company has failed to comply with the obligations stated in the agreement.

The accuracy of data relating to spam and fake accounts has been questioned by musk as he believes it should represent 20 percent rather than less than 5 percent.

Elon Musk does not believe in the company's data and wants to review and analyze the data for himself and for that matter ask for requisite data.

Musk said as per agreement and obligations, he must be provided such data for a smooth transition of ownership.

Mr. Musk has said that he has lined up financing for the deal, through equity and loans, pulling in top shareholders including Besides, including Saudi Arabian investor Prince Alwaleed bin Talal and Sequoia Capital which are the top shareholders' investors, musk has gathered financing support for the deal causing mistrust and financial loss owed to the delay and hold of the deal.

While this delay in a way supports the already ongoing heavy campaign launched by the group but the share prices are also down from  5.5 percent at $37.95 in early trading.

On the other hand, Musk's Tesla shares have also fallen down by 9 percent after the antitrust review of the deal.

The Tesla chief had already planned to lay off 10 percent of employees and in the latest written memo for return to the office,40 percent have decided to quit the job.

It seems the musk company and Twitter deal are under great pressure which is seen in the context of Tesla's operation in china with some Chinese investors. 

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