ELON Musk has canceled a $44 billion deal to buy Twitter, claiming in a letter that the company “violated” the merger agreement.
The letter was sent on Friday and cited several discrepancies and a lack of information Musk needed from Twitter to seal the deal.
According to a letter from Musk, he claimed Twitter was “materially in breach of several provisions” of a previous agreement.
In addition, the letter states that Twitter “appeared to have provided false and misleading information on which Mr. Musk relied in completing the merger agreement.”
The letter goes on to say that Twitter failed to meet its aforementioned contractual obligations.
Musk stated that Twitter failed to provide information on its spam and bot accounts, which was formally requested in a May 25 letter.
“The May 25 letter made it clear that Mr. Musk’s goal was to understand how many of Twitter’s alleged mDAUs were actually fake or spam accounts,” the letter reads.
“Twitter failed or refused to provide this information.”
“Mr. Musk has reason to believe that the actual number of fake or spam accounts on the Twitter platform is substantially higher than the less than 5% figure that Twitter presents in its SEC filings.”
According to the termination letter, Musk requested this specific information three more times, in letters dated June 6, 2022, June 17, 2022, and June 29, 2022.
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“Over the past month, Mr. Musk has made it clear that he views Twitter’s failure to respond as a material breach of the Merger Agreement, which gives him the right to terminate the Merger Agreement if he is not cured,” the letter continued.
Additional information on the company’s financial situation was also not given to Musk, according to the letter.
Twitter chairman Bret Taylor posted a tweet late Friday afternoon regarding the termination.
“Twitter’s board is committed to completing the transaction at the price and terms agreed with Mr. Musk and plans to take legal action to enforce the merger agreement,” Taylor wrote.
“We are confident that we will prevail in the Delaware Court of Chancery.”
Shares of Twitter fell 6% on Friday afternoon when news of the termination broke.
Musk was working to finalize a deal to buy Twitter on April 25 for $46.5 billion.
The Tesla CEO had previously said, “One of my top priorities would be to eliminate the spam and the spam bots and bot armies that are on Twitter.”
Musk has also said that in order to grow and become a true free speech platform, Twitter needs to be privatized.
On June 21, it was announced that Twitter’s board of directors unanimously recommended that shareholders approve the proposed $44 billion sale.
Musk made headlines earlier this week when it was revealed he had twins with Neuralink’s Shivon Zilis late last year.
The Sun has reached out to Musk’s attorney and assistants for comment.
https://www.thesun.ie/tech/news-tech/9071446/elon-musk-terminates-plan-to-buy-twitter/ Elon Musk ‘terminates Twitter deal’ with $44 billion drama plaguing Tesla CEO at Sun Valley conference