{"id":1545999,"date":"2022-07-09T15:34:22","date_gmt":"2022-07-09T19:34:22","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1545999"},"modified":"2022-07-09T16:31:58","modified_gmt":"2022-07-09T20:31:58","slug":"the-three-key-words-that-rule-musk-twitter-fight-and-what-will-happen-next","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-three-key-words-that-rule-musk-twitter-fight-and-what-will-happen-next\/","title":{"rendered":"The Three Key Words That Rule Musk-Twitter Fight, And What Will Happen Next"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-three-key-words-that-rule-musk-twitter-fight-and-what-will-happen-next%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1545999&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Three magic words loom over <a href=\"https:\/\/www.dailywire.com\/topic\/elon-musk\">Elon Musk<\/a>\u2019s bid to scuttle his $44 billion buyout of <a href=\"https:\/\/www.dailywire.com\/news\/twitter-strikes-back-will-sue-elon-musk-for-walking-away\">Twitter<\/a>, according to <a href=\"https:\/\/www.bnnbloomberg.ca\/the-fight-between-musk-and-twitter-will-come-down-to-three-words-1.1789615\">Bloomberg<\/a>.<\/p>\n<p>Musk moved to back out of the deal Friday, claiming the San Francisco-based social media giant refused to turn over key data on the number of fake accounts that make up its active daily user totals. Musk said he relied on the company\u2019s claims when making his bid, but then was denied the ability to verify them.<\/p>\n<p>\u201cMaterial Adverse Effect,\u201d was cited by the Tesla chief\u2019s attorneys in a Securities and Exchange Commission filing Friday.<\/p>\n<p>Invoking the phrase means Musk believes Twitter did not act in good faith during the due diligence period, and their actions negatively affected his ability to fairly gauge his own position. Whether Twitter\u2019s alleged deception occurred or was enough to warrant ending the deal will be decided in court.<\/p>\n<p dir=\"ltr\" lang=\"en\">Elon Musk Terminates Twitter Purchase Deal, Citing Material Breach of Agreement by Company Refusing to Provide Access to Data<a href=\"https:\/\/t.co\/LRsm6Qr7JH\">https:\/\/t.co\/LRsm6Qr7JH<\/a><\/p>\n<p>\u2014 TheLastRefuge (@TheLastRefuge2) <a href=\"https:\/\/twitter.com\/TheLastRefuge2\/status\/1545534728572477441?ref_src=twsrc%5Etfw\">July 8, 2022<\/a><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Elon Musk Terminates Twitter Purchase Deal, Citing Material Breach of Agreement by Company Refusing to Provide Access to Data<a href=\"https:\/\/t.co\/LRsm6Qr7JH\">https:\/\/t.co\/LRsm6Qr7JH<\/a><\/p>\n<p>&mdash; TheLastRefuge (@TheLastRefuge2) <a href=\"https:\/\/twitter.com\/TheLastRefuge2\/status\/1545534728572477441?ref_src=twsrc%5Etfw\">July 8, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Musk will have to prove Twitter\u2019s omissions amounted to an \u201cunexpected, fundamental, permanent\u201d negative development, Larry Hamermesh, a University of Pennsylvania law professor, told Bloomberg.<\/p>\n<p>Judges have been hesitant to find acquisition targets\u2019 meet the threshold for material adverse effect.<\/p>\n<p>\u201cTerminating a merger deal based on a MAE is extremely difficult, and has only happened once in history,\u201d<strong>\u00a0<\/strong><a href=\"https:\/\/accelerateshares.com\/\" data-ylk=\"slk:Accelerate\u2019s\" data-rapid_p=\"26\" data-v9y=\"1\">Accelerate\u2019s\u00a0<\/a><a href=\"https:\/\/twitter.com\/JulianKlymochko\" data-ylk=\"slk:Julian Klymochko\" data-rapid_p=\"27\" data-v9y=\"1\">Julian Klymochko<\/a><strong>\u00a0<\/strong>told <a href=\"https:\/\/www.benzinga.com\/m-a\/22\/07\/28008377\/exclusive-musks-material-adverse-effect-not-an-option-for-him-walking-away-merger-expert-tells-benzi\">Benzinga.com<\/a>, citing a 2018 case in which drugmaker Fresenius was able to drop its $4.3 billion bid for rival Akorn after learning Akorn executives hid problems with data needed for approval of some drugs and was not forthcoming about its profitability.<\/p>\n<p>A Delaware judge defined material adverse effect in a 2020 case involving Boston Scientific as an \u201cadverse change in the target\u2019s business that is consequential to the company\u2019s long-term earnings power over a reasonable period, which one would expect to be measured in years rather than months.\u201d<\/p>\n<p>Twitter said in a <a href=\"https:\/\/www.prnewswire.com\/news-releases\/twitter-board-confident-in-merger-agreement-and-intends-to-close-transaction-at-54-20-per-share-price-301583272.html\">statement<\/a> Friday night that it is prepared to fight Musk in court.<\/p>\n<p>\u201cWe are committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plan to pursue legal action to enforce the merger agreement,\u201d the company said.<\/p>\n<p>Klymochko predicted that Musk will come back with an offer lower than his $54.20-per-share deal before the case ever gets to trial.<\/p>\n<p>\u201cMusk closing the Twitter acquisition at a reduced price is the most likely scenario, given a trial will be highly uncertain for both parties,\u201d Klymochko said. \u201cThe market has always heavily discounted the probability of this deal closing on the original terms, as indicated by the large discount to $54.20 that Twitter stock has traded at consistently.\u201d<\/p>\n<p><a href=\"https:\/\/www.msn.com\/en-us\/money\/stockdetails\/fi-a24op2?ocid=ansMSNMoney11&amp;duration=1D\">Twitter shares<\/a> fell in after-hours trading Friday by nearly 5%, to $35.05.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Three magic words loom over Elon Musk\u2019s bid to scuttle his $44 billion buyout of Twitter, according to Bloomberg. Musk moved to back out of the deal Friday, claiming the San Francisco-based social media giant refused to turn over key data on the number of fake accounts that make up its active daily user totals. &#8230;<\/p>\n","protected":false},"author":729,"featured_media":1536575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1545999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1545999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/729"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1545999"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1545999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1536575"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1545999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1545999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1545999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}