‘Remind us that you are always negotiating, apparently even rich people do it.’
The situation of the $ 44 billion acquisition of Twitter by the world's richest millionaire, Elon Musk, is getting more and more difficult.
Most recently Elon Musk represented by lawyer Mike Ringler ‘threatened’ to cancel the acquisition after accusing Twitter Inc of ‘blocking’ his request to find out more about its user base.
In a letter issued to the United States (US) Securities and Exchange Commission (SEC), it stated that Musk is entitled to receive the requested data in preparation for Twitter’s acquisition.
He commented, Musk needs to have a complete and accurate understanding of Twitter’s core business capital including access to its active user base before completing a transaction.
However, according to Ringler Twitter is seen as opposing and failing to provide the information requested by Musk, and this clearly violates the material of the agreed agreement.
It could not directly result in a failure in the acquisition transaction and in turn Musk reserves the right to terminate the merger agreement with Twitter.
In response to the allegations, Twitter issued a statement stating its willingness to cooperate and share information to complete the transaction in accordance with the terms of the agreement.
The company also added that even though Musk waived typical rights in his passion of acquiring Twitter, they were willing to complete the acquisition at an agreed price and terms.
Analyst Views On Twitter Acquisition By Musk
Generally, Musk who previously bought a number of stakes in Twitter is trying to acquire the company entirely at a bid price of $ 44 billion.
However, the acquisition effort was delayed after Musk, who is still trying to raise $ 44 billion, raised the issue of Twitter bot spam accounts.
Some analysts assume that Musk is trying to use the issue to renegotiate the price or more accurately terminate the deal.
This is because the issues raised by Musk are unconventional and reflect how unserious he is in acquiring Twitter.
Also, based on Tesla Inc's weak performance it is almost certain that Musk is trying to buy Twitter at a lower price.
And this can be clearly seen with the decline in Twitter shares since the issues Musk raised spread in various media.
