<p>According to a report, several major US and foreign banks stand to suffer losses of $500 million or more if they carry out their commitments to finance Elon Musk's $44 billion acquisition of Twitter.</p>

<p>The banks, led by Morgan Stanley and six others, including Barclays and Bank of America, pledged to raise $13 billion in debt six months ago to finance Musk's purchase. This commitment is unconditional and does not depend on their ability to sell the debt to investors.&nbsp;</p>

<p><strong>Watch |&nbsp;Elon Musk offers proposal to resolve China-Taiwan tensions</strong></p>

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<p>As per Bloomberg "if the debt were to be sold now" it would lead to a collective loss of $500 million or more.</p>

<p>Banks agreed to terms with lower returns when financing the Musk-Twitter deal in April. Since then, the credit markets have gotten worse as a result of higher interest rates following efforts to reduce record inflation, with returns on riskier junk bonds and leveraged loans increasing. This can potentially result in write-downs.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/explained-how-will-elon-musk-pay-for-twitter-523181">Deal back on: How much will Twitter change after takeover by Elon Musk?</a></strong></p>

<p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer of Moses Singler law firm while talking to Bloomberg.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/world/after-ukraine-russia-war-elon-musk-now-has-a-suggestion-on-how-to-end-china-taiwan-tensions-523452">After Ukraine-Russia, Elon Musk now has a suggestion on how to end China-Taiwan tensions</a></strong></p>

<p>However, he cautioned that, despite incurring significant losses, there aren't many legal or reputational ways for banks to avoid granting the loan.</p>

<p>This comes as last week Musk abruptly abandoned his three-month attempt to end the Twitter agreement through a US court in Delaware. The billionaire had blamed the prevalence of false accounts on the social media platform for his disinterest in sticking to the deal.</p>

<p><em>(With inputs from agencies)</em></p>

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According to a report, several major US and foreign banks stand to suffer losses of $500 million or more if they carry out their commitments to finance Elon Musk's $44 billion acquisition of Twitter.

According to a report, several major US and foreign banks stand to suffer losses of $500 million or more if they carry out their commitments to finance Elon Musk's $44 billion acquisition of Twitter. The banks, led by Morgan Stanley and six others, including Barclays and Bank of America, pledged to raise $13 billion in debt six months ago to finance Musk's purchase. This commitment is unconditional and does not depend on their ability to sell the debt to investors. Watch | Elon Musk offers proposal to resolve China-Taiwan tensions As per Bloomberg "if the debt were to be sold now" it would lead to a collective loss of $500 million or more. Banks agreed to terms with lower returns when financing the Musk-Twitter deal in April. Since then, the credit markets have gotten worse as a result of higher interest rates following efforts to reduce record inflation, with returns on riskier junk bonds and leveraged loans increasing. This can potentially result in write-downs. Also read | Deal back on: How much will Twitter change after takeover by Elon Musk? “I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer of Moses Singler law firm while talking to Bloomberg. Also read | After Ukraine-Russia, Elon Musk now has a suggestion on how to end China-Taiwan tensions However, he cautioned that, despite incurring significant losses, there aren't many legal or reputational ways for banks to avoid granting the loan. This comes as last week Musk abruptly abandoned his three-month attempt to end the Twitter agreement through a US court in Delaware. The billionaire had blamed the prevalence of false accounts on the social media platform for his disinterest in sticking to the deal. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Elon Musk-Twitter saga | Banks financing the deal face $500 million in losses: Report

<p>A court filing has revealed that billionaire Elon Musk has accused Twitter Inc of fraud by concealing serious flaws in the social media company's data security.</p>

<p>Following the allegations made by a Twitter whistleblower, Musk amended his previously filed lawsuit. The whistleblower claimed that there was meddling on the influential social media platform by foreign agents.</p>

<p>Alleging that Twitter was not complying with a 2011 agreement with the Federal Trade Commission regarding user data, Musk said he has a full right to walk away from his offer to buy the San Francisco-based company for $44 billion.</p>

<p>In response to Musk's allegations, Twitter said "Mr Musk’s claims are factually inaccurate, legally insufficient and commercially irrelevant."</p>

<p><strong><a href="https://www.wionews.com/world/elon-musk-blames-russia-ukraine-conflict-for-delaying-twitters-buyout-deal-515397">Also read |&nbsp;Elon Musk blames Russia-Ukraine conflict for delaying Twitter's buyout deal</a></strong></p>

<p>The former head of Twitter security Peiter "Mudge" Zatko was fired by the company for poor performance following which he told the US Congress that the platform ignored his security concerns.</p>

<p>Pointing out that he tried alerting management to grave vulnerabilities to hacking, Zatko contended that employees across the company had too much access to user data.&nbsp;</p>

<p>Saying that Zatko's claims amounted to fraud and breach of contract by Twitter, Musk said he has asked a Delaware judge to find that he was not obligated to close the deal.</p>

<p>Highlighting that Zatko's accusations were not grounds for terminating the deal agreement, Twitter said it conducted an internal investigation of his allegations and reached the conclusion that they lacked merit.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

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A court filing has revealed that billionaire Elon Musk has accused Twitter Inc of fraud by concealing serious flaws in the social media company's data security. Following the allegations made by a Twitter whistleblower, Musk amended his previously filed lawsuit.

A court filing has revealed that billionaire Elon Musk has accused Twitter Inc of fraud by concealing serious flaws in the social media company's data security. Following the allegations made by a Twitter whistleblower, Musk amended his previously filed lawsuit. The whistleblower claimed that there was meddling on the influential social media platform by foreign agents. Alleging that Twitter was not complying with a 2011 agreement with the Federal Trade Commission regarding user data, Musk said he has a full right to walk away from his offer to buy the San Francisco-based company for $44 billion. In response to Musk's allegations, Twitter said "Mr Musk’s claims are factually inaccurate, legally insufficient and commercially irrelevant." Also read | Elon Musk blames Russia-Ukraine conflict for delaying Twitter's buyout deal The former head of Twitter security Peiter "Mudge" Zatko was fired by the company for poor performance following which he told the US Congress that the platform ignored his security concerns. Pointing out that he tried alerting management to grave vulnerabilities to hacking, Zatko contended that employees across the company had too much access to user data. Saying that Zatko's claims amounted to fraud and breach of contract by Twitter, Musk said he has asked a Delaware judge to find that he was not obligated to close the deal. Highlighting that Zatko's accusations were not grounds for terminating the deal agreement, Twitter said it conducted an internal investigation of his allegations and reached the conclusion that they lacked merit. (With inputs from agencies) Watch WION's live TV here: ×

Musk-Twitter legal battle: Tesla CEO accuses the social media platform of security lapses in court filing

<p>Chief Executive Officer Elon Musk has sold Tesla’s shares worth $6.9 billion while citing his ongoing legal battle with social media giant Twitter.</p>

<p>Saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform, Musk defended his decision of selling shares in front of the company’s shareholders.</p>

<p>“In the (hopefully unlikely) event that Twitter forces this deal to close and&nbsp;some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he tweeted.</p>

<p>Twitter had sued Musk after the billionaire-backed out from his cash offer to acquire the company for $44 billion.</p>

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<p>Musk had accused the San Francisco-based company of misleading his team about the true size of its user base and other problems which he said amounted to fraud and breach of contract.</p>

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<p dir="ltr" lang="en">Less than 5% of Twitter daily users are fake/spam</p>
— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1555951580339372032?ref_src=twsrc%5Etfw">August 6, 2022</a></blockquote>
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<p>Dismissing his claim as buyer’s remorse in the wake of a plunge in technology stocks, Twitter has sued Musk to force him to complete the transaction.</p>

<p>In April, Musk said he had no further sales planned after he sold $8.5 billion worth of Tesla shares.</p>

<p>According to court filings, Musk sold about 7.92 million shares between August 5 and August 9 and he now owns 155.04 million Tesla shares or just under 15 per cent of the automaker.</p>

<p>Since the automaker reported better-than-expected earnings on July 20, its shares have risen nearly 15 per cent.&nbsp;</p>

<p>If the Biden administration passes the climate bill, which will lift the cap on tax credits for electric vehicles, it will further boost Tesla shares.</p>

<p>Musk has also hinted at the possibility of starting his own social media platform like former US President Donald Trump did after he was blocked from accessing Twitter.</p>

<p><em>(With inputs from agencies)</em></p>

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Chief Executive Officer Elon Musk has sold Tesla’s shares worth $6.9 billion while citing his ongoing legal battle with social media giant Twitter. Saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform, Musk defended his decision of selling shares in front of the company’s shareholders.

Chief Executive Officer Elon Musk has sold Tesla’s shares worth $6.9 billion while citing his ongoing legal battle with social media giant Twitter. Saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform, Musk defended his decision of selling shares in front of the company’s shareholders. “In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he tweeted. Twitter had sued Musk after the billionaire-backed out from his cash offer to acquire the company for $44 billion. × Musk had accused the San Francisco-based company of misleading his team about the true size of its user base and other problems which he said amounted to fraud and breach of contract. Less than 5% of Twitter daily users are fake/spam — Elon Musk (@elonmusk) August 6, 2022 × Dismissing his claim as buyer’s remorse in the wake of a plunge in technology stocks, Twitter has sued Musk to force him to complete the transaction. In April, Musk said he had no further sales planned after he sold $8.5 billion worth of Tesla shares. According to court filings, Musk sold about 7.92 million shares between August 5 and August 9 and he now owns 155.04 million Tesla shares or just under 15 per cent of the automaker. Since the automaker reported better-than-expected earnings on July 20, its shares have risen nearly 15 per cent. If the Biden administration passes the climate bill, which will lift the cap on tax credits for electric vehicles, it will further boost Tesla shares. Musk has also hinted at the possibility of starting his own social media platform like former US President Donald Trump did after he was blocked from accessing Twitter. (With inputs from agencies) Watch WION's live TV here: ×

Contingency plan: Elon Musk sells Tesla shares worth $6.9 billion amid legal dispute with Twitter

<p>Alleging the social media platform misled him about key aspects of its business before he agreed to a $44 billion buyout, Elon Musk has accused Twitter of fraud.</p>

<p>While Twitter is seeking to force him to close the deal, Musk has argued the number of users who can be shown advertising on the platform is far below the firm's figures.</p>

<p>"Twitter's disclosures have slowly unraveled, with Twitter frantically closing the gates on information in a desperate bid to prevent the Musk Parties from uncovering its fraud," the filing stated.</p>

<p>Accusing Twitter of committing fraud and breaching its contract along with violation of a securities law in Texas, Musk’s counterclaims were filed confidentially last week.</p>

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<p>Rejecting the mercurial billionaire's argument, Twitter said "The counterclaims are a made-for-litigation tale that is contradicted by the evidence and common sense."</p>

<p>Justifying his termination of the deal, Musk said it was because the firm had misled him regarding its tally of fake and spam accounts.</p>

<p>Sticking to its estimates that less than five percent of the activity on the platform, Twitter slammed Musk for his false claim that the false account figure topping 10 per cent is "untenable."</p>

<p>Saying the analysis relied on a “generic web tool” that designated Musk’s own Twitter account as a likely bot, Twitter took issue with Musk’s estimate of fake accounts.</p>

<p>Before the case's high-profile trial on October 17, Twitter had set a vote on the merger for September 13 and requested shareholders to endorse the deal.</p>

<p><em>(With inputs from agencies)</em></p>

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Alleging the social media platform misled him about key aspects of its business before he agreed to a $44 billion buyout, Elon Musk has accused Twitter of fraud.

Alleging the social media platform misled him about key aspects of its business before he agreed to a $44 billion buyout, Elon Musk has accused Twitter of fraud. While Twitter is seeking to force him to close the deal, Musk has argued the number of users who can be shown advertising on the platform is far below the firm's figures. "Twitter's disclosures have slowly unraveled, with Twitter frantically closing the gates on information in a desperate bid to prevent the Musk Parties from uncovering its fraud," the filing stated. Accusing Twitter of committing fraud and breaching its contract along with violation of a securities law in Texas, Musk’s counterclaims were filed confidentially last week. × Rejecting the mercurial billionaire's argument, Twitter said "The counterclaims are a made-for-litigation tale that is contradicted by the evidence and common sense." Justifying his termination of the deal, Musk said it was because the firm had misled him regarding its tally of fake and spam accounts. Sticking to its estimates that less than five percent of the activity on the platform, Twitter slammed Musk for his false claim that the false account figure topping 10 per cent is "untenable." Saying the analysis relied on a “generic web tool” that designated Musk’s own Twitter account as a likely bot, Twitter took issue with Musk’s estimate of fake accounts. Before the case's high-profile trial on October 17, Twitter had set a vote on the merger for September 13 and requested shareholders to endorse the deal. (With inputs from agencies) Watch WION's live TV here: ×

Musk alleges Twitter misled him about key aspects of its business

<p>In a wide-ranging subpoena, Twitter’s legal team on Tuesday asked for information about a host of tech investors and entrepreneurs connected to Elon Musk as per a report from The Washington Post.</p>

<p>The subpoena, which includes “extensive requests for communications, including ‘checklists, timelines, presentations, decks, organisational calls, meetings, notes, recordings’ related to the deal’s financing,’” has miffed Musk’s high-tech allies.</p>

<p>The Post reported that these allies include former Facebook exec and CEO of Social Capital Chamath Palihapitiya, founder of VC firm Andreessen Horowitz Marc Andreessen, the founding chief operating officer of PayPal, and current general partner at Craft Ventures, David Sacks.</p>

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<p>“News that I am being subpoenaed by Twitter’s lawyers reminded me of this issue of Mad Magazine, I don’t know why,” Sacks posted on Twitter.</p>

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<p dir="ltr" lang="en">The news that I am being subpoenaed by Twitter’s lawyers reminded me of this issue of Mad Magazine, I don’t know why. <a href="https://t.co/LbrDnRAL6B">https://t.co/LbrDnRAL6B</a> <a href="https://t.co/kznsrxFOxf">pic.twitter.com/kznsrxFOxf</a></p>
— David Sacks (@DavidSacks) <a href="https://twitter.com/DavidSacks/status/1554258141876932608?ref_src=twsrc%5Etfw">August 2, 2022</a></blockquote>
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<p>Calling Twitter’s subpoenas sent to “friends in the ecosystem” surrounding Musk a “giant harassing fishing expedition,” Joe Lonsdale, general partner at 8VC also tweeted about it.</p>

<p>Musk, who is the world's richest man, was sued by Twitter after he backed out from his $44 billion offer of the acquisition of the social media company.</p>

<p>Blaming Twitter Inc for breaching the agreement by misrepresenting the number of fake accounts on its platform, Musk abandoned the takeover on July 8.</p>

<p>Calling the fake account claims a distraction and saying Musk was bound by the merger contract to close the deal at $54.20 per share, Twitter sued him days later.</p>

<p>Escalating his legal fight against Twitter, Musk countersued the San Francisco-based company last week after accusing it of dragging its feet in response to his discovery requests.</p>

<p><em>(With inputs from agencies)</em></p>

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In a wide-ranging subpoena, Twitter’s legal team on Tuesday asked for information about a host of tech investors and entrepreneurs connected to Elon Musk as per a report from The Washington Post.

In a wide-ranging subpoena, Twitter’s legal team on Tuesday asked for information about a host of tech investors and entrepreneurs connected to Elon Musk as per a report from The Washington Post. The subpoena, which includes “extensive requests for communications, including ‘checklists, timelines, presentations, decks, organisational calls, meetings, notes, recordings’ related to the deal’s financing,’” has miffed Musk’s high-tech allies. The Post reported that these allies include former Facebook exec and CEO of Social Capital Chamath Palihapitiya, founder of VC firm Andreessen Horowitz Marc Andreessen, the founding chief operating officer of PayPal, and current general partner at Craft Ventures, David Sacks. × “News that I am being subpoenaed by Twitter’s lawyers reminded me of this issue of Mad Magazine, I don’t know why,” Sacks posted on Twitter. The news that I am being subpoenaed by Twitter’s lawyers reminded me of this issue of Mad Magazine, I don’t know why. https://t.co/LbrDnRAL6B pic.twitter.com/kznsrxFOxf — David Sacks (@DavidSacks) August 2, 2022 × Calling Twitter’s subpoenas sent to “friends in the ecosystem” surrounding Musk a “giant harassing fishing expedition,” Joe Lonsdale, general partner at 8VC also tweeted about it. Musk, who is the world's richest man, was sued by Twitter after he backed out from his $44 billion offer of the acquisition of the social media company. Blaming Twitter Inc for breaching the agreement by misrepresenting the number of fake accounts on its platform, Musk abandoned the takeover on July 8. Calling the fake account claims a distraction and saying Musk was bound by the merger contract to close the deal at $54.20 per share, Twitter sued him days later. Escalating his legal fight against Twitter, Musk countersued the San Francisco-based company last week after accusing it of dragging its feet in response to his discovery requests. (With inputs from agencies) Watch WION's live TV here: ×

Twitter subpoenas host of tech investors and entrepreneurs connected to Elon Musk: Report