Elon Musk threatens to terminate Twitter deal over breach of agreement

Elon Musk threatens to terminate Twitter deal over breach of agreement

by Pranali Mehta

Tesla boss, Elon Musk is reportedly threatening to withdraw his deal to buy Twitter, alleging that the social media platform has failed to reveal the number of fake and spam accounts operated on it.

As per reports, a letter sent to the US Securities and Exchange Commission earlier this week by Musk’s legal team warned that Musk could scrape the $44 billion deal as Twitter is in a clear breach of the takeover agreement.

Musk said last month that the acquisition was put on hold temporarily as he wanted to confirm with Twitter that the number of accounts not operated by real humans on it was under 5%. 

The legal team stated in the letter that Twitter has refused to give information that Musk has been repeatedly requesting since 9th May 2022 for his evaluation of fake and spam accounts on the platform.

They further stated that the SpaceX boss believes that the social media firm is actively opposing and hindering his rights, as well as the firm’s corresponding obligations, as mentioned in the merger agreement.

The letter goes on to state that this is seen as a clear material breach of the platform’s obligations under the merger and that Musk holds all rights resulting thereof, such as his right to not complete the transaction and the right to terminate the acquisition agreement.

Musk claims that more than 20% of accounts on Twitter can be spam or fake and that his offer was based on the accuracy of the platform’s own reports.

He also criticized Twitter CEO, Parag Agrawal, for publicly refusing to give proof regarding the figures, fearing that the company has a deterrent for reducing spam accounts as it has a direct impact on the platform’s daily users count.

Agrawal, in response, wrote that Twitter suspends over half a million spam accounts on a daily basis and blocks millions of accounts that do not pass human verification challenges on a weekly basis.

The letter disputes that Musk, being the platform’s potential owner, is entitled to the requested data in order to prepare for the business’ transition to his ownership and for facilitating his transaction financing.

Source credit: https://news.sky.com/story/elon-musk-threatens-to-terminate-twitter-deal-over-spam-and-fake-accounts-in-legal-letter-12628908

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...