Elon Musk could walk away from his $44 billion deal to acquire Twitter Inc. (TWTR.N) if the social media network fails to provide data on spam and fake accounts, the billionaire told the company on Monday. warned in the letter.
The letter said Twitter was in “clear material breach” of its obligations and that Musk reserves all rights to terminate the merger agreement.
It is the first time that Musk has threatened to walk away from the deal in writing in protest of Twitter airing it on its social media platform.
Twitter had previously dismissed Musk’s warnings that the deal was “on hold”, arguing that the data would help prepare him for Twitter ownership, not to do due diligence and reopen negotiations. .
Earlier in March, Musk said he would “temporarily halt” the deal while he waits for the social media company to provide data on the proportion of its fake accounts.
“Musk believes that Twitter is transparently refusing to comply with its obligations under the merger agreement, raising suspicion that the company is withholding the requested data,” according to the letter.
A self-proclaimed free-speech absolutist, Musk has questioned the accuracy of Twitter’s public filings about spam accounts representing less than 5% of its user base, claiming they have to be at least 20%. needed.
Musk said he needed the data to conduct his own analysis of Twitter users and did not believe in the company’s “loose testing method”.
“Musk is clearly entitled to the requested data to enable him to convert Twitter’s business into his ownership and facilitate his transaction financing,” his lawyers said in the letter.
Musk has said he has arranged financing for the deal through equity and debt, attracting top shareholders including Saudi Arabian investors Prince Alwaleed bin Talal and Sequoia Capital.
Twitter shares were down 5.5% at $37.95 in early trading.
Twitter did not immediately respond to a request for comment.
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