BREAKING: Elon Musk Threatens To End Twitter Takeover Bid Due To “Material Breach” By The Social Media Giant
Elon Musk has threatened to pull out of his deal to purchase Twitter as he accuses the social media giant of “resisting and thwarting” his right to information about spam and fake accounts on the platform.
In a letter to Twitter on Monday, Musk’s attorney argued that Musk’s purchase agreement mandates the platform to provide the requested data in full.
He has alleged that Twitter is in a “clear material breach” of its obligations and “reserves all rights” to terminate the merger agreement.
The letter further refutes the company’s claim that it is only required to provide information for closing the deal’s “limited purpose. ”
“Musk is entitled to seek, and Twitter is obligated to provide, information and data for, inter alia, any reasonable business purpose related to the consummation of the transaction,” the letter states.
“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 Musk’s own analysis of that data will uncover,” it continues.
In March, Musk stated he would put the deal “temporarily on hold” while he waited for the company to provide data on the proportion of its fake accounts.
Musk successfully won a bid to purchase the company in April.
According to a press release, “Twitter, Inc. (NYSE: TWTR) today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.”
Board Chairman Bret Taylor said, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
The post BREAKING: Elon Musk Threatens To End Twitter Takeover Bid Due To “Material Breach” By The Social Media Giant appeared first on The Gateway Pundit.
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