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Billionaire entrepreneur Elon Musk has reportedly called a halt on his proposed deal to buy giant social media platform Twitter.
According to a letter sent by Musk’s attorneys on Friday — addressed to Twitter’s Chief Legal Officer Vijaya Gadde — he wanted to call off the deal because officials had not been able to give him the information he needed with regard to the percentage of fake “bot” accounts present on the platform.
“As further described below, Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect (as that term is defined in the Merger Agreement),” the letter began.
“Mr. Musk and his financial advisors at Morgan Stanley have been requesting critical information from Twitter as far back as May 9, 2022—and repeatedly since then—on the relationship between Twitter’s disclosed mDAU figures and the prevalence of false or spam accounts on the platform,” the letter continued.
Musk has said on several occasions that he would reconsider his initial $44 billion offer if the platform was unable or unwilling to verify the percentage of fake “bot” accounts.
“Notwithstanding these repeated requests over the past two months, Twitter has still failed to provide much of the data and information responsive to Mr. Musk’s repeated requests,” the letter stated.
According to a report from CNBC, Musk’s original agreement stated that he would still pay $1 billion in the event that he failed to make good on the deal — but it’s possible that Twitter could still dispute his plan to walk away and attempt to enforce the original deal.
This is a breaking news story; refresh the page for updates.