Elon Musk Threatens To Leave The Twitter Deal
Elon Musk made the most direct threat to abandon his purchase of Twitter ( TWTR Monday), openly accusing the social media company, of violating the merger agreement by failing to provide the data he requested regarding spam and fake accounts.
Vijaya Gadde was sent a letter accusing Musk of “actively resisting” and “thwarting his information rights”, as stated in the deal.
Musk’s attorney wrote to the company, “This is a material breach of Twitter’s obligations under the merger deal and Mr. Musk retains all rights resulting from it including his right not consummate the transaction or his right to terminate this merger agreement.”
Musk demanded that Twitter provide information on its testing methods to back its claim that bots and fake accounts account for less than 5%, which Musk has repeatedly stated in public disclosures over the years. Musk also demanded that Twitter provide information about its testing methods to support his claims that bots and fake accounts constitute less than 5% of the platform’s active user base. This figure Musk has repeatedly stated for years in boilerplate public disclosures.
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