Elon Musk’s move to acquire Twitter is proving to be a rocky process amid the company’s refusal to release data and information critical to the deal. Due to their noncompliance, Musk sent a letter to Twitter’s legal team on Monday, threatening to cancel the deal.
According to the letter sent on Musk’s behalf to Twitter’s Chief Legal Officer Vijaya Gadde, Twitter has “refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company’s platform.”
The letter later adds, Musk “reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”
In April, the billionaire innovator entered into a definitive agreement to acquire Twitter for $44 billion. However, that deal was put on hold “pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”
President Donald Trump predicted the demise of Twitter following the hold, saying he believes it is “unlikely to see Elon Musk close his ridiculous deal with them after having learned so much about the massive number of Bots and Fake Accounts that people using Twitter must endure.”
The letter affirms Trump’s prediction as Musk’s team argues that refusing to release information on their spam and bot accounts is a “breach of Twitter’s obligations under the merger agreement.”
Per The Epoch Times, analysts reacting to Musk’s letter have speculated that he is attempting to walk out of the deal with Twitter.
Wedbush analyst Dan Ives commented on Twitter, “Speaks to our thesis over past few weeks that spam/bot issue was going to be the ‘material breach’ cited by Musk to try to get out of TWTR deal. $1 billion breakup fee; Twitter Board will fight this clearly. Help remove a major overhang on Tesla; Twitter stock be under pressure.”