Twitter was bought for 44 billion dollars. Can Musk “cancel the order”? The terms of the contract clearly state that the transaction can be terminated, but trade conflicts often end in negotiations and settlements, which may include a reduction in the purchase price.
There are signs that Musk may want to back off a few weeks after reaching a 44 billion deal to buy Twitter.
The billionaire recently tweeted,The deal was “suspended” until more information was obtained about the Twitter bot's fake account.Over the years, Twitter has said that fake accounts are estimated to account for less than 5% of daily active accounts, but the real data may be higher.
All of this coincides with recent “intense pressure” on technology stocks, including Tesla, a banknote printer that Muskry used to obtain capital for the acquisition. Meanwhile, Twitter's board of directors said it intends to continue to execute the acquisition agreement at a price of $54.20 per share. The agreement requires Musk to pay Twitter $54.20 per share.
Can both parties to the transaction withdraw at any time?
It's not easy to do this. The parties to the transaction signed an acquisition agreement detailing what measures the parties will take to ensure the completion of the agreed transaction; and what legal rights each party has if the other party does not insist on completing the transaction. This is similar to signing a housing contract.
This motivatesMusk quickly negotiated a deal and reached some agreements in favor of the seller in the process. For example, he abandoned the detailed investigation he usually does about the target company (like omitting a house inspection when buying a home) and gave Twitter “force...