Media
Twitter’s $44 billion acquisition with Musk is flying away, causing shares to plummet
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.
— Elon Musk (@elonmusk) July 11, 2022
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.”
Rupert Murdoch, the 92-year-old media tycoon, announced his decision to step down from his roles as Chairman of Fox Corporation and Executive Chairman of News Corp on Thursday. The transition is set to take effect in November, with his son, Lachlan Murdoch, assuming the position of sole chairman for both media conglomerates.
According to reports from Fox News, Murdoch addressed his colleagues in a letter, where he explained that his decision was prompted by a desire to embrace new roles while recognizing the capable leadership of his son, Lachlan. He stated, “For my entire professional life, I have been engaged daily with news and ideas, and that will not change. But the time is right for me to take on different roles, knowing that we have truly talented teams and a passionate, principled leader in Lachlan who will become sole Chairman of both companies.”
Despite the transition, Rupert Murdoch made it clear that he would remain actively involved in the “contest of ideas,” highlighting the intensifying battle over freedom of speech and freedom of thought. He criticized elites and the media for prioritizing narratives over the pursuit of truth.
“In my new role, I can guarantee you that I will be involved every day in the contest of ideas,” he wrote.
Lachlan Murdoch issued a statement, congratulating his father for his remarkable 70-year career and acknowledging his enduring impact on the companies he founded. He expressed gratitude for Rupert Murdoch’s vision, pioneering spirit, and steadfast determination, assuring that he would continue to provide valuable counsel in his role as Chairman Emeritus.
Rupert Murdoch’s media empire includes FOX News Channel, which has been a dominant force in 24-hour news coverage since its launch in 1996. Under his leadership, it became one of the world’s most influential news sources. Additionally, Murdoch served as the CEO of 21st Century Fox from 1979 until 2015 and as its Chairman from 1991 to 2015.
Murdoch’s career began in 1954 when he assumed control of News Limited, a public corporation in Australia previously led by his father. He expanded his media holdings internationally, acquiring major UK publications like News of the World and The Sun in 1969, as well as U.S. newspapers including the New York Post and The Village Voice.
His impact extended to television with the launch of the FOX Broadcasting company in 1986 and the subsequent establishment of FOX Sports. In 2019, Fox Corporation emerged as a standalone, publicly traded entity following the separation of 21st Century Fox, redefining the U.S. media landscape.
Rupert Murdoch’s contributions to the media industry have earned him numerous accolades, including the Companion of the Order of Australia (A.C.) and induction into the Television Academy Hall of Fame. Alongside his family, he has supported various charitable organizations across the U.S., the U.K., Australia, Asia, and Israel.
The transition of leadership marks a significant moment in the media world, as Rupert Murdoch’s enduring legacy continues to influence the future of media and journalism.
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