Twitter buyout: Binance CEO is stands with Elon Musk

Twitter buyout: Binance CEO is stands with Elon Musk

 

In May, Binance Exchange, the world is largest Cryptocurrency Exchange, had backed Tesla Elon Musk is bid to acquire Twitter (TWTR) with $500 million. Now that Musk has decided to step down from the deal, it is still standing by him.

 

Binance Chief Executive Officer Changpeng Zhao tweeted on 24^th July that he will support "whatever Elon decides”. Responding to a tweet asking him to buy the social networking company, Zhao wrote "It (Twitter) might be slightly over priced, But will support whatever Elon decides. There is a time to lead, and a time to follow."

 

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In April, Twitter is board of directors had announced in that it had reached an agreement to sell the social network company to Elon Musk for approximately $44 billion.

 

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But in the following months of the announcement of the deal, there were many twists and turns. Elon Musk repeatedly accused Twitter of being ambiguous with him and hiding certain key performing indicators with him especially about the number of spam or fake accounts on the platform.

 

 

On 8^th July, Elon had a notice sent to Twitter notifying that he wanted to back out of the deal to acquire the social network. Soon after that, Twitter announced it will sue Elon Musk and make him honor the deal.

 

Twitter registered its case to a court in Delaware. The trial in the matter is set to begin in October. However, due to all the negative press and Musk is chaotic bid twitter is revenue has suffered.

 

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On 22^nd July, the company announced in its quarterly earnings call that it had missed expectations mainly because of "advertising industry headwinds... as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk".

 

News agency AFP quoted an analyst saying that "Twitter is on a rowboat in the middle of a storm. Twitter is now in the unenviable position of convincing advertisers that its advertisement business is solid."