Twitter Board Will ‘Enforce Merger Agreement’

Elon Musk tweets, questions about bots, and other distractions aside, the Twitter board of directors intends to hold the world’s richest man to his agreement to purchase the social media platform for $44 billion. So reports CNN.

Musk has said he cannot go through with the Twitter purchase until it can be determined now many users it has, excluding spam bots. He has even asked the Securities and Exchange Commission (SEC) for its help to certify that bots are 5% or less of Twitter users.

Twitter filed its proxy statement with the SEC Tuesday, saying it wants the deal to close “as promptly as practicable.”

CNN obtained a statement from the board Tuesday that says: “The Board and Mr. Musk agreed to a transaction at $54.20 per share. We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement.”

However, analyst Dan Ives said Tuesday there is now a 60% or more chance that “Musk ultimately walks from the deal and pays” the $1 billion breakup fee.

Venture capitalist Tim Draper, who has invested $100 million in Musk’s Twitter deal and has been a Tesla and SpaceX backer, believes the deal will still close, but at a lower price. “I think he’s going to get a better deal because he found out that … two-thirds [of users] are bots,” Draper said at the Token Security Summit in New York, the New York Post reports.

 


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