Musk made an official $44 billion bid for Twitter back in April but decided to pull out of the deal earlier this month. The billionaire explained his decision by saying that the social media powerhouse “is in material breach of multiple provisions” of the agreement. Among other things, Musk singled out Twitter’s unwillingness to give him access to data about fake/spam accounts and the company’s recent layoffs.

Twitter believes that Musk needs to close the purchase and is not giving up on the sale. The company is trying to force the deal to go through despite Musk’s decision or at least get the $1 billion breakup fee. Their chances of getting either of those is now a lot bigger thanks to the granted trial.

Twitter previously wanted the trial to take place in September, wanting to wrap it up before October 24, 2022, a deadline that allows both sides to walk away from the agreement if the deal isn’t finalized. On the other hand, Musk wanted to have the trial pushed back to February. In the end,  McCormick sided with the social media company.

“The reality is that delay threatens irreparable harm to the seller, Twitter, for the reasons I described earlier: The longer the delay, the greater the risk. Given this reality I think a schedule closer to the norm is in order. For this reason, I think we should go to trial in October of this year,” McCormick said in her ruling on Tuesday.

The post Twitter Granted 5-Day Trial Against Elon Musk in October appeared first on theprimarymarket.com.

According to Musk’s letter, Twitter “is in material breach of multiple provisions” of the deal and “has not complied with its contractual obligations.” Musk singled out the company’s refusal to give him data about fake and spam accounts and firing of “two key, high-ranking employees” and “a third of its talent acquisition team.”

Twitter, on the other hand, is unlikely to accept Musk’s withdrawal. The company’s chairman Bret Taylor already announced that the company remains committed to the deal and “plans to pursue legal action to enforce the merger agreement.”

This looks like just the beginning of the Musk vs. Twitter saga. The most likely scenario will be a long and messy legal battle that will see Musk trying to prove he pulled out of the deal fair and square while Twitter will try to make him complete it. There is a chance that the company will at least try to get its hands on the $1 billion break-up fee stated in the contract.

After the news broke out, Twitter shares plunged five percent in extended trading. The stock dipped as low as $34.04 before bouncing to $34.78. This marked its lowest point since May.

The post Elon Musk Pulls Out of Twitter Deal appeared first on theprimarymarket.com.

Twitter organized its most recent employee gathering, known as OneTeam, in Houston in early 2020 before canceling the 2021 and 2022 retreats due to the pandemic. OneTeam was set to return in 2023, but the increasing costs of traveling and organizing events prompted the company to scrap it.

“The reduction of travel and event costs allow us to operate in a more responsible and efficient manner, considering the global macroeconomic environment we’re currently facing,” said Twitter through a spokesperson.

Twitter is employing several strategies in an attempt to keep its costs down during a challenging period for the tech industry. First, the company halted its hiring in May and also retracted some of the job offers it previously handed out. This was followed by a change in travel policy that now only includes business-critical purposes trips. As a result, all other domestic and international business travel will be halted in the near future. 

This might only be the beginning, especially if Elon Musk finalizes his purchase of Twitter. Musk hinted at plans to maximize social media platforms’ profitability through actions like cutting staff, slashing executive salaries, and introducing monetization.

The post Twitter Cancels Disneyland Company Retreat as Part of Cost-Cutting Measures appeared first on theprimarymarket.com.

Musk stated last month that the deal is on standby as he wants to look into Twitter’s claims that spam and fake accounts make up less than 5 percent of daily active users. He disputed the number at the time, saying that the figure could be “However, it appears that the billionaire never did get the opportunity to do the investigation.

In a letter filed to SEC by his lawyers, Musk said that Twitter “refused to provide the information” he requested. He also called labeled the refusal as “a clear material breach of Twitter’s obligations under the merger agreement” and said that he “reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”

Elon Musk reached a deal to buy Twitter in May. He agreed to pay a price of $54.20 a share, which put a price tag of 44 billion on the sale. Since then, Twitter’s shares have dropped to $38.15. 

The post Elon Musk Ready to Nix Twitter Deal if Not Provided Fake Account Details appeared first on theprimarymarket.com.

Musk made an official $44 billion bid for Twitter back in April but decided to pull out of the deal earlier this month. The billionaire explained his decision by saying that the social media powerhouse “is in material breach of multiple provisions” of the agreement. Among other things, Musk singled out Twitter’s unwillingness to give him access to data about fake/spam accounts and the company’s recent layoffs.

Twitter believes that Musk needs to close the purchase and is not giving up on the sale. The company is trying to force the deal to go through despite Musk’s decision or at least get the $1 billion breakup fee. Their chances of getting either of those is now a lot bigger thanks to the granted trial.

Twitter previously wanted the trial to take place in September, wanting to wrap it up before October 24, 2022, a deadline that allows both sides to walk away from the agreement if the deal isn’t finalized. On the other hand, Musk wanted to have the trial pushed back to February. In the end,  McCormick sided with the social media company.

“The reality is that delay threatens irreparable harm to the seller, Twitter, for the reasons I described earlier: The longer the delay, the greater the risk. Given this reality I think a schedule closer to the norm is in order. For this reason, I think we should go to trial in October of this year,” McCormick said in her ruling on Tuesday.

The post Twitter Granted 5-Day Trial Against Elon Musk in October appeared first on theprimarymarket.com.

According to Musk’s letter, Twitter “is in material breach of multiple provisions” of the deal and “has not complied with its contractual obligations.” Musk singled out the company’s refusal to give him data about fake and spam accounts and firing of “two key, high-ranking employees” and “a third of its talent acquisition team.”

Twitter, on the other hand, is unlikely to accept Musk’s withdrawal. The company’s chairman Bret Taylor already announced that the company remains committed to the deal and “plans to pursue legal action to enforce the merger agreement.”

This looks like just the beginning of the Musk vs. Twitter saga. The most likely scenario will be a long and messy legal battle that will see Musk trying to prove he pulled out of the deal fair and square while Twitter will try to make him complete it. There is a chance that the company will at least try to get its hands on the $1 billion break-up fee stated in the contract.

After the news broke out, Twitter shares plunged five percent in extended trading. The stock dipped as low as $34.04 before bouncing to $34.78. This marked its lowest point since May.

The post Elon Musk Pulls Out of Twitter Deal appeared first on theprimarymarket.com.

Twitter organized its most recent employee gathering, known as OneTeam, in Houston in early 2020 before canceling the 2021 and 2022 retreats due to the pandemic. OneTeam was set to return in 2023, but the increasing costs of traveling and organizing events prompted the company to scrap it.

“The reduction of travel and event costs allow us to operate in a more responsible and efficient manner, considering the global macroeconomic environment we’re currently facing,” said Twitter through a spokesperson.

Twitter is employing several strategies in an attempt to keep its costs down during a challenging period for the tech industry. First, the company halted its hiring in May and also retracted some of the job offers it previously handed out. This was followed by a change in travel policy that now only includes business-critical purposes trips. As a result, all other domestic and international business travel will be halted in the near future. 

This might only be the beginning, especially if Elon Musk finalizes his purchase of Twitter. Musk hinted at plans to maximize social media platforms’ profitability through actions like cutting staff, slashing executive salaries, and introducing monetization.

The post Twitter Cancels Disneyland Company Retreat as Part of Cost-Cutting Measures appeared first on theprimarymarket.com.

Musk stated last month that the deal is on standby as he wants to look into Twitter’s claims that spam and fake accounts make up less than 5 percent of daily active users. He disputed the number at the time, saying that the figure could be “However, it appears that the billionaire never did get the opportunity to do the investigation.

In a letter filed to SEC by his lawyers, Musk said that Twitter “refused to provide the information” he requested. He also called labeled the refusal as “a clear material breach of Twitter’s obligations under the merger agreement” and said that he “reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”

Elon Musk reached a deal to buy Twitter in May. He agreed to pay a price of $54.20 a share, which put a price tag of 44 billion on the sale. Since then, Twitter’s shares have dropped to $38.15. 

The post Elon Musk Ready to Nix Twitter Deal if Not Provided Fake Account Details appeared first on theprimarymarket.com.