Elon Musk Gets Green Light In Twitter Takeover
(ReliableNews.org) – Twitter’s Board accepted Elon Musk’s offer to buy the company in April. The deal then entered a waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. That period is now over, paving the way for the deal to go through.
On Friday, June 3, Musk’s $44-billion acquisition cleared the hurdle required by the Act that forces companies to report deals above a certain threshold to the Department of Justice and Federal Trade Commission. Neither agency requested additional information from the company to assess its legality in the allotted 30-day period. The deal is expected to close later this year, but even though it cleared the mandatory waiting period, there’s still a problem.
On June 6, the Associated Press reported Musk has threatened to walk away from the deal with Twitter, claiming the company still hasn’t given him information on fake accounts and bots. The billionaire’s lawyers made the threat in a letter to Twitter, which the company then disclosed to the Securities and Exchange Commission (SEC).
Some believe the move is a way for Musk to back out of the deal. But Boston College Law Professor Brian Quinn told the AP the billionaire waived his right to ask for more due diligence.
ONE MORE TIME –
He waived the right to due dilligence in the merger agreement@elonmusk $twttr https://t.co/PvhVzgsvf8
— Stephanie Ruhle (@SRuhle) June 6, 2022
Musk placed the deal on hold in May over the bot issue, something Twitter has denied. If the billionaire walks away from the deal, he could be forced to pay a $1-billion fee.
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