“Oh?” Scorch remarked in surprise while reading the news for the day. The American businessman Elon Musk had made the headlines again.
“Do you remember a few months ago I told you about Elon Musk buying Twitter?” said Scorch.
Musk is among the richest people in the world. He is the founder of Tesla, the electric vehicle company. He has also founded SpaceX, an aerospace company, that sends rockets to space.
“I remember,” Verum said, “Musk had signed a deal to buy the social networking company Twitter for a whopping amount running into billions of dollars. Why are you bringing it up again?”
“Yes, I am bringing it up because as per the latest news reports Musk has backed out of the $44 billion deal!” Scorch announced.
“What? Why?” Felix said.
Scorch explained, “Because there are not just humans on Twitter. The platform also has spam and bots. Spam accounts are accounts that send unwanted messages. Bots are robots. They are an automated program that can tweet and retweet on Twitter as human users do. A few days ago, Twitter said it removes a million such accounts every day!
According to Twitter, spam and bot accounts make up less than 5% of its total users. But Musk believes they make up more than 20% of Twitter’s users. Musk said Twitter bosses did not give him the required information to support its claim. This is in breach of the agreement.”
“What’s a breach of the agreement?” Felix said.
“Breach of the agreement means not adhering to terms and conditions mentioned in the agreement,” answered Scorch.
“What was Twitter’s response?” Orak said.
“Twitter is going to take legal action against Musk. They want to make him stick to the agreement and buy Twitter,” said Scorch.
“Oh, I get it now. Twitter wants Musk to proceed with the deal. What happens if Musk does not buy Twitter and breaks the agreement,” asked Orak.
“When agreements break, there is a penalty. In this agreement, there’s a break-up fee of $1 billion,” replied Scorch.
“Keep us updated. I would like to know how this deal unfolds,” said Orak.