Elon Musk Claims Twitter Is in ‘Material Breach’ of $44 Billion Deal Over Refusal to Provide Info on Fake Accounts
variety.comTodd Spangler NY Digital EditorElon Musk slammed Twitter as “actively resisting and thwarting his information rights (and the company’s corresponding obligations)” under the billionaire’s $44 billion deal to acquire the company, because the social network is refusing to provide data backing up its claim about fake and spam accounts.Musk, who launched his takeover bid for Twitter in April, is threatening to spike the deal over the issue.
Shares of Twitter fell more than 6% in premarket trading Monday on the latest disclosure.In May, Musk said his deal for Twitter was “temporarily on hold,” citing the need to conduct due diligence on Twitter’s claim that fake and spam accounts represent less than 5% of daily active users.
An SEC filing Monday included a June 6 letter from Musk’s lawyers to Twitter, saying that the company 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.”“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr.
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