June 7, 2022
Tesla boss Elon Musk has threatened to walk away from his $44 billion deal to take over Twitter if the company refuses to provide him with data on spam and fake accounts.
In the letter to Twitter, Musk’s lawyers reiterated the billionaire’s request for details on bot accounts, and said Musk reserved all rights to stop the purchase because the company was in a “clear material breach” of its obligations by not providing him with the needed information.
In response to the warning, Twitter said it planned to push through the deal on the agreed terms.
“Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement,” the company said in a statement.
In May, Musk told the public that he would suspend the Twitter deal until the company provided evidence that spam bots made up less than 5% of its total users.
Experts monitoring the issue believe Musk is likely to renegotiate the deal, which is necessary because of the large margin of the agreed purchase price of $52.20 and Twitter shares, which are now trading at $39.57.
The sources for this piece include an article in Reuters.
