Musk Takes Formal Action To Kill Twitter Deal
Elon Musk has formalised his intentions to walk away from a A$62 billion takeover of Twitter, filing a letter with regulators that makes his demands clear.
Elon Musk publicly tweeted that the deal was “on hold” until the company can provide data regarding the amount of spam bot accounts on Twitter.
He said it was “not out of the question” for the price to be lower, and he is “still committed to acquisition”, despite believing that more than one in five Twitter accounts were bogus.
Twitter have said it will enforce the purchase at the original US$44 billion price.
Musk’s letter argues otherwise.
“As Twitter’s prospective owner, Mr Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership and to facilitate his transaction financing,” lawyer Mike Ringler wrote in the letter.
“To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model – its active user base.
“Based on Twitter’s behaviour to date, and the company’s latest correspondence in particular, Mr Musk believes the company is actively resisting and thwarting his information rights.
“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”
Twitter responded with a statement, saying: “Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement.”
Musk’s letter argues that “Twitter’s latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written materials or verbal explanations, is tantamount to refusing Mr Musk’s data requests.
“Twitter’s effort to characterise it otherwise is merely an attempt to obfuscate and confuse the issue.”