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- The letter stated that Twitter was in “clear material violation” of its agreements and that Musk reserved all rights to terminate the merger deal.
Elon Musk may abandon his $44 billion bid to acquire Twitter if the social media network fails to share data on spam and phoney accounts, the entrepreneur told the firm in a letter on Monday.
The letter stated that Twitter was in “clear material violation” of its agreements and that Musk reserved all rights to terminate the merger deal.
This is the first time Musk has threatened to walk away from the agreement in writing, as opposed to tweeting the threat.
Twitter has previously minimised Musk’s warning that the acquisition was “on pause,” stating that the data would assist Musk in preparing for his ownership of Twitter, not to do due diligence and reopen discussions.
Musk stated earlier in March that he would “temporarily suspend” the agreement until the social media business provided data on the proportion of its phoney accounts.
According to the letter, “Musk feels Twitter is clearly refusing to comply with its obligations under the merger agreement,” which increases suspicion that the firm is hiding the needed data.
Musk, a self-proclaimed free-speech absolutist, has questioned the integrity of Twitter’s public reports regarding spam accounts comprising less than 5 percent of its user base, alleging they must comprise at least 20 percent.
Musk stated that he need the data to perform his own analysis of Twitter users and disapproved of the company’s “loose testing techniques.”
“Musk is certainly entitled to the sought data to prepare for the transition of Twitter’s business to his ownership and to help his deal finance,” his attorneys wrote in a letter.
Musk stated that he had secured finance for the transaction through shares and loans, attracting prominent shareholders including as Saudi Arabian billionaire Prince Alwaleed bin Talal and Sequoia Capital.