During a presentation before the Securities and Exchange Commission (SEC, for its acronym in English), on the morning of this Monday, June 6, Twitter shared a letter it received from Elon Musk’s legal team, in which the tycoon threatens to terminate his $44 billion deal to buy the social media platform, accusing the company of refusing to give him information on the number of spam and fake accounts.
According to letterMusk requested the information as early as May 9, about a month after his bid to acquire Twitter, in order to assess how many of the platform’s 229 million accounts are fake. However, the company has refused to provide the data necessary for the CEO of SpaceX and Tesla to conduct their own analysis.
Twitter’s latest offer to simply provide additional details about the company’s own testing methodologies, whether through written materials or verbal explanations, amounts to rejecting Musk’s data requests. […] Mr. Musk has made it clear that he doesn’t think the company’s lax testing methodologies are adequate, so he needs to do his own analysis. The data that he has requested is necessary for this.
Musk believes that the company’s reluctance to provide more information is a “clear material breach of Twitter’s obligations under the merger agreement,” and reserves all rights resulting therefrom, including its right not to consummate the merger agreement. transaction and your right to terminate the agreement.
For its part, through a statement sent to Yahoo Financea Twitter spokesperson assured that the company will continue to share information with Musk and that it intends to enforce the agreement:
Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement. We believe that this agreement is in the best interests of all shareholders. We intend to close the transaction and enforce the agreement at the agreed price and terms.
Twitter shares fell 2.6 percent on Monday, reinforcing doubts that Musk will finalize his offer, as he went from forcing the existence of the purchase agreement to attacking the company, questioning his leadership and challenging the veracity of the claims. that only five percent of its reported users are bot.
Some experts say it could be a negotiation strategy to lower the price as Twitter’s shares have fallen in recent weeks, while others speculate that the tycoon intends to walk away from the deal altogether.
If so, the agreement The merger includes a $1 billion breakup fee for each party. However, according to the original filing, it also includes a specific performance provision that allows Twitter to compel Musk to consummate the purchase in lieu of monetary compensation for any violations thereof.
Source: Okchicas
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