- Elon Musk wants to terminate his $44 billion bid to buy Twitter.
- He cites that Twitter has breached multiple agreed-up provisions by making false and misleading representations concerning the number of spam and fake accounts.
- The Twitter board is committed to seeing the deal through to the end.
Tesla CEO and Space X founder Elon Musk is seeking to withdraw his $44 billion bid to purchase the social media company known as Twitter.
He made his intentions known through a letter sent to the Securities and Exchange Commission by his lawyers. The letter states that Twitter breached several agreed-upon provisions by providing false and misleading information that Elon Musk used to enter into the Merger Agreement. In particular, the letter mentioned that Twitter failed to provide him with data and information regarding fake and spam accounts on the platform. It stated:
For nearly two months, Mr. Musk has sought the data and information necessary to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform
Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.
Twitter Board Vows to See the Deal Through.
However, through its Chairman Bret Taylor, Twitter’s board has vowed to see the deal through even if it involves pursuing legal action to enforce the merger agreement. Mr. Taylor shared his insights into the situation through the Tweet below.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
Price of Dogecoin Remains Stable Despite the News.
Elon Musk has, over the months, been known as the DogeFather after his appearance on Saturday Night Live back in May 2021. In addition, he had hinted at using Dogecoin on Twitter for subscription payments if his deal to acquire the social media platform sailed through.
At the time of writing, news of Elon Musk withdrawing from his Twitter bid has not harmed the value of Dogecoin.
However, a glance at the daily DOGE/USDT chart below reveals that the meme-coin faces stiff resistance at the 50-day moving average (white). Additionally, the daily MFI hints at an overbought scenario, with the daily MACD hinting at reduced buying. As a result, Dogecoin could face a dip into the new week, particularly if Bitcoin loses the $21k support zone.