Elon Musk and the founder of Twitter, Jack Dorsey, risk 1,000 million when the sale of the network fails

The richest man in the world, Elon Muskand the founder of Twitter, jack dorseyeach of them is played near 1 billion dollars (985 million euros at the current exchange rate) due to Musk’s refusal to buy the social network.

the founder of Tesla Y Space X could face the payment of 1,000 million dollars to Twitter for rejecting the agreed purchase worth $44 billion, $54.2 per share.

The sale agreement between Musk and Twitter -published by the blue bird company in the SEQthe US market regulator, on June 21 – contemplates the commitment assumed by both by which, in the event that one of the parties broke the agreement, it would pay 1,000 million dollars to the other.

On the other hand, the failure of the sale leaves Jack Dorsey without the possibility of entering the nearly 1,000 million dollars he would get from selling his 18 million Twitter titles to Elon Muskat the offered price of $54.2 per share.

Jack Dorsey, founder of Twitter. ROLF VENNENBERND / DPA

According to the statements sent by Twitter to the SEC about the negotiations with Elon Musk, he revealed last May that he had contacted Dorsey on several occasions to convince him to approve the proposed offer with the sale of his shares.

According to the same statements, Dorsey would not have committed to selling all his shares to Musk, and would be analyzing various possibilities. Jack Dorsey invented Twitter at the beginning of this century, after launching a messaging company.

Last November, Jack Dorsey decided to step down as CEO of Twitter. The founder of the company defended in January 2021 the decision of the social network to suspend Donald Trump’s account on Twitter, after the events that occurred in the United States Capitol, although he admitted that the decision set “a dangerous precedent.”

Lack of information

In a letter sent by Musk to Twitter on Friday, published by the American company in the SEC, the Canadian businessman announced his decision to reject the agreed purchase.

Musk assures in his letter that Twitter has not offered his advisers, the investment bank Morgan Stanleyall the information required to complete the operation.

In particular, it maintains that it has not been able to verify that, as Twitter claims, the amount of spam and fake messages that the social network receives daily is less than 5%.

Musk’s lawyers defend that the company’s refusal to provide the required information is one of the reasons contemplated in the purchase agreement for which it could be canceled.

Friday’s announcement of Musk’s rejection of the operation caused Twitter to drop 4.98% on the stock market, closing at $36.81 per share.

The value of the shares of the social network on the stock market they have never reached the value offered by Musk54.2 dollars per share, only reaching over 50 dollars in some sessions last April.

After Musk’s refusal, Twitter has reacted by publishing a tweet from its president, Brett Taylorin which it says that the Board of Directors “commits to close the transaction with the price and terms agreed with Musk and plans to take legal action to enforce the merger agreement.

Elon Musk, who owns 9.2% of Twitter shares, announced his decision to launch an offer for 100% of the company’s capital on April 13.

That day, Musk sent a letter to the president of Twitter announcing his intention to buy 100% of the company’s capital, for 44,000 million dollars in cash, after verifying, he said, that the social network did not meet the expectations of freedom of expression. desired.

For someone like Elon Musk, with a fortune estimated at 240,000 million dollarsthe possible penalty of 1,000 million for not buying Twitter can be peccadillo.

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Elon Musk and the founder of Twitter, Jack Dorsey, risk 1,000 million when the sale of the network fails