Elon Musk terminates a $44 billion Twitter merger deal!
Tesla CEO abandons transactions as the social media network has not responded to multiple requests for information on fake or spam accounts on the platform, his lawyers say.
“Twitter is in material breach of multiple provisions” of the deal agreement, Mr. Musk’s lawyers said in the filing, and the company “appears to have made false and misleading representations.”
Musk lawyer Mike Ringler in the letter to Twitter dated Friday wrote that for nearly two months, Musk has sought data to judge the prevalence of “fake or spam” accounts on the social media platform.
“Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the letter stated.
The information is fundamental to Twitter’s business and financial performance, and it’s needed to finish the merger agreement, it added.
Elon Musk and Twitter did not immediately return requests for comment.
While the company has repeatedly said it intends “to close the transaction and enforce the merger agreement at the agreed price and terms.”
As reported, Twitter’s shares fell 8 percent in after-hours trading.
This is a developing story. Check back for updates.