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Twitter’s $44 billion acquisition with Musk is flying away, causing shares to plummet

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Elon Musk

In the game of Twitter verses Elon Musk, the social media company is getting creamed.

On Friday, Billionaire and Tesla CEO Elon Musk threw a wrench in the $44 billion Twitter acquisition deal by having his attorneys write a letter to Twitter’s board announcing he is ending his bid to purchase the company. The eight-page letter prompted Twitter to respond with threats of a lawsuit to make Musk continue with the acquisition.

The letter states: “As further described below, Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect (as that term is defined in the Merger Agreement).”

The Associated Press reported Friday that Twitter had responded to Musk’s letter on Friday, saying it will sue in order to uphold the deal. CNBC reports that Twitter shares sank in premarket trade Monday after Elon Musksaid he is trying to terminate his $44 billion takeover of the company. “Shares of the social media platform fell more than 6%, wiping nearly $1.8 billion off the company’s market value. Tesla, where Musk is CEO, fell almost 4%.”

Musk has argued that Twitter was not honest and accurate with its information regarding how many fake “bot” accounts exist. “Twitter, on the other hand, says it has given Musk the information he needs to assess its claim that spam accounts make up only 5% of monetizable daily active users, including its so-called firehose, an unfiltered, real-time stream of daily tweets” adds CNBC. Bret Taylor, Twitter’s board chair, said the company would pursue legal action in the Delaware Court of Chancery to enforce the agreement.

Showing no concern over Twitter’s threats, Musk responded Monday by posting a meme mocking Twitter.

CNBC writes that the likely scenario is that the two parties are “set for a protracted court battle, according to lawyers. Musk could also be faced with paying a $1 billion breakup fee for walking away.”

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Israel

Senior Saudi official says Iran ‘engineered’ war in Gaza and ‘should have been stopped a long time ago’

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Although it has been widely believed, a senior Saudi Arabian official has accused Tehran of having “engineered a war in Gaza” for the purpose to interfere with Jerusalem’s attempts to normalize relations with Riyadh. The unnamed official then described the regime as “a country that sponsors terrorism, and it should have been stopped a long time ago.”

In an interview with Israel’s Kan public broadcaster, the anonymous individual said that “any suspicious object” entering his country’s airspace is intercepted by the Kingdom’s defense forces. The comment may suggest that there was some level of participation by the Saudis in neutralizing the missiles and attack drones that the Islamic Republic fired at Israel on Saturday, notes Foreign Desk News. 

Reports have confirmed that the American, British, French, and Jordanian militaries assisted the IDF in the air defenses during the bombardment.

Foreign Desk News states of the improving relations between Israel and its neighbors:

In 2020, Bahrain, the United Arab Emirates, and Morocco signed normalization agreements with the Jewish state under the direction of the Trump administration, in what was called the Abraham Accords. The following January, Sudan would also join the reconciliation.

Any diplomatic understandings between Israel and Saudi Arabia would be seen as a big boost to regional security, considering the Kingdom is often viewed as the most powerful Arab-majority country in the world.

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