Elon Musk Says Will Drop Twitter Deal if Data on Spam Accounts Not Provided

Musk says in a letter that Twitter was in a "clear material breach" of its obligations and that he reserves all rights to terminate the merger agreement.

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By Reuters | Updated: 6 June 2022 19:18 IST
Highlights
  • Elon Musk reached a deal to take Twitter private in April
  • The $44 billion (roughly 3,41,800 crore) deal is yet to be completed
  • Elon Musk has now threatened to terminate the agreement with Twitter

Elon Musk's letter says he believes Twitter is actively resisting and thwarting his information rights

Photo Credit: Reuters

Elon Musk warned he may walk away from his $44 billion (roughly 3,41,800 crore) deal to acquire Twitter if the social media network fails to provide data on spam and fake accounts, the billionaire said in a letter to the company on Monday.

The letter said Twitter was in a "clear material breach" of its obligations and that Musk reserves all rights to terminate the merger agreement.Earlier in March, Musk said he would put the deal "temporarily on hold", while he waits for the social media company to provide data on the proportion of its fake accounts.

"Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Musk's own analysis of that data will uncover," according to the letter.

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"Musk believes the company is actively resisting and thwarting his information rights," the letter by Musk's lawyers said.

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Twitter shares were down 5.5 percent at $37.95 (roughly Rs. 2,900) in premarket trading.

© Thomson Reuters 2022


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