has threatened to withdraw from his agreement to buy in a new letter filed with the
In the , Musks attorneys wrote that Twitters refusal to provide the data Musk wants to conduct his own analysis of the number of spam accounts on the platform is a clear material breach of Twitters 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.
Search less. Close more.
Grow your revenue with all-in-one prospecting solutions powered by the leader in private-company data.
Musk originally agreed to buy Twitter for around $44 billion, or $54.20 per share. Shortly before, Musk became Twitters largest outside shareholder and then submitted an unsolicited bid to buy the company.
Twitter deal delays and suspicion
But since the agreement, the deal has essentially been delayed because Musk wants to do his own analysis of the number of spam accounts on the platform.
Musk believes the number of fake accounts to be higher than Twitters own estimate. Twitter CEO said that Twitters estimate is based on multiple internal reviews, and that external validation isnt an option.
As Twitters prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitters business to his ownership and to facilitate his transaction financing. To do both, he must have a complete and accurate understanding of the very core of Twitters business modelits active user base, Musks attorneys wrote.
In any event, Mr. Musk is not required to explain his rationale for requesting the data, nor submit to the new conditions the company has attempted to impose on his contractual right to the requested data, stated the letter. At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Mr. Musks own analysis of that data will uncover.
Twitters stock opened at $39.08 on Tuesday, significantly less than the price per share Musk agreed to pay for the company.
Illustration:
Stay up to date with recent funding rounds, acquisitions, and more with the 蹤獲弝け Daily.


67.1K Followers