Saturday, 9 July 2022

Billionaire Elon Musk Cancels $44bn Twitter Deal


 

Billionaire American businessman, Elon Musk, says he is terminating the $44 billion Twitter deal.

The CEO of Tesla and Space X struck a deal to buy the microblogging platform back in April.

In a letter Mike Ringler, a lawyer sent to a Securities and Exchange Commission filing, on Musk’s behalf, the businessman said, “Twitter has not complied with its contractual obligations.”

He claimed that Twitter did not provide Musk with relevant business information he requested.

Musk has previously said he wanted to assess Twitter’s claims that about 5% of its monetisable daily active users (mDAUs) are spam accounts.

“Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the letter read

Ringler also charged in the letter that Twitter breached the merger agreement because it allegedly contains “materially inaccurate representations.”

The accusation is based on Musk’s own preliminary review of spam accounts on Twitter’s platform.

Twitter has said it’s not possible to calculate spam accounts from solely public information and that a team of experts conducts a review to reach the 5% figure.

“While this analysis remains ongoing, all indications suggest that several of Twitter’s public disclosures regarding its mDAUs are either false or materially misleading,” the letter read.

He also claimed Twitter breached its obligations under the agreement to get Musk’s consent before changing its ordinary course of business, pointing to recent layoffs at the company.

Twitter is yet to comment on the development


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