Updated · Nov 16, 2022
Elon Musk Accuses Twitter of Breach of Agreement
Updated · Jun 07, 2022
In a letter filed with the SEC on Monday, the billionaire threatened to walk away from the deal.
“Resisting and Thwarting”
Elon Musk has warned Twitter that he could pull his $44 billion deal to buy the company if it does not provide the required data on spam bots and fake accounts. The billionaire has accused the social network company of hiding information.
Musk made the accusation through his lawyers in a letter filed with the Securities and Exchange Commission on Monday. In it, they alleged that the platform is “actively resisting and thwarting his information rights”.
“Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” the letter said. It was signed by Mike Ringler, an attorney with Skadden Arps.
Musk has been vehemently opposed to Twitter’s assessment that spam bots make up less than 5% of users. The platform cited that figure in a quarterly regulatory filing. However, the Tesla CEO believes the actual figure is much higher. Last month, he put the deal on hold until the company could prove its assessment.
“My offer was based on Twitter’s SEC filings being accurate. Yesterday, Twitter’s CEO publicly refused to show proof of <5%. This deal cannot move forward until he does.”
The social network platform has remained committed to completing the deal on agreed terms. A week after Musk first paused the acquisition, Vijaya Gadde, the firm’s top lawyer, told employees that there was “no such thing”.
In a response to the letter on Monday, the company has held fast to that commitment.
"Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement," it said in a statement.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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