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Elon Musk threatens to end Twitter deal over ‘material breach’

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Self-proclaimed free-speech absolutist Elon Musk tweeted in May that his deal to buy Twitter was “temporarily on hold” until the company could prove accounts belonging to spam bots accounted for less than 5% of all users.

Musk is upping the ante, accusing Twitter of being in “material breach” of its deal obligations. The warning was delivered in a letter from Musk’s attorneys to Twitter’s legal officer, Vijaya Gadde.

The letter stated Musk reserved all rights to terminate the acquisition if the company did not present the details requested about the bot accounts. Not providing the information was a “clear material breach” it reiterated.

In a statement, Twitter responded that it planned to enforce the completion of the deal on the agreed terms: “Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement.”

Musk has stated his belief that spam bots account for at least 20% of Twitter users, while independent researchers projected the number around 9% to 15%. Musk said he needs the data from Twitter in order to conduct his own analysis because he does not believe in the company’s “lax testing methodologies.”

Reuters reports:

To be sure, Musk may be able to walk away or renegotiate the deal even if the law is on Twitter’s side. This is because any litigation is likely to be protracted, and Twitter may decide it makes more sense to agree to a lower price or receive compensation from Musk rather than try to force him to complete the transaction in court.

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education

BREAKING: Disney drops suit challenging special district status in settlement with Florida, DeSantis

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A settlement was reached Wednesday in the two-year lawsuit over who controls the special governing district that encompasses the Walt Disney World Resort, which includes Disney dropping its lawsuitsagainst a newly created tourism board.

“We are glad that Disney has dropped its lawsuits against the new Central Florida Tourism Oversight District and conceded that their last-minute development agreements are null, void, and unenforceable,” Bryan Griffin, DeSantis’ communications director, said in a statement. “No corporation should be its own government. Moving forward, we stand ready to work with Disney and the District to help promote economic growth, family-friendly tourism, and accountable government in Central Florida.”

Fox News explains the dispute began “after Disney’s criticism of Florida’s Parental Rights in Education Act – derided by critics as the so-called “Don’t Say Gay” bill – prompted the DeSantis administration to revoke the special Disney-controlled tax district that gave the entertainment autonomy over its theme parks in the region.”

“No corporation should be its own government,” Bryan Griffin, a spokesman for the governor, said in an emailed statement. “Moving forward, we stand ready to work with Disney and the District to help promote economic growth, family-friendly tourism, and accountable government in Central Florida.”

Misleadingly deemed the “Don’t Say Gay” bill, prohibited the teaching of sexual orientation and gender identity to young students in the state. National Review reports:

After receiving pressure from employees, Disney’s then-CEO, Bob Chapek, said that the company’s leaders had been opposed to the bill “from the outset,” and Disney declared that the legislation “should never have passed and should never have been signed into law.”

In February 2023, DeSantis signed House Bill 9B, which established the Central Florida Tourism Oversight District to replace Disney’s Reedy Creek Improvement District. Reedy Creek was a 56-year-old special taxing district that allowed Disney control its own development, regulations, building codes, and other municipal services.

Lawmakers voted to give the governor the power to appoint the district’s board members.

However, before a DeSantis-appointed board took over last March, the Disney-controlled board handed control of the district’s development over to Disney…

As part of the settlement, Disney acknowledges that the development agreement approved by the outgoing Reedy Creek board has “no legal effect or enforceability.”

As for the media reports that DeSantis had been humiliated and out-maneuvered by Disney, Griffin said that “as usual, the media were wrong.”

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