Elon Musk is threatening to walk away from his blockbuster deal from Twitter, claiming that the social media giant is in "material breach" of the merger agreement as the two continue to wrangle over how many spam bots and fake accounts are on the platform.
Musk's ongoing complaints were revealed in a letter to Twitter dated June 6 that was disclosed in a filing with U.S. Securities and Exchange Commission [SEC]. In the letter, Musk's lawyers claim that Twitter hasn't done enough to reveal the true number of spam bots and fake accounts on the platform, which the company claims hovers around 5 percent of total users.
"Based on Twitter’s behavior to date, and the company's latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement," Musk's lawyers wrote.
"This is a clear material breach of Twitter's 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."
Musks has previously said that that his buyout deal with Twitter "cannot move forward" until he is satisfied with its data on fake accounts, which he claims is around 20 percent. When Twitter CEO Parag Agrawal weighed in on the subject, Musk responded with the classic poo emoji.
Twitter responded to Musk's latest broadside by essentially holding the billionaire's feet to the fire, reportedly saying it "intends to close the transaction with Elon Musk and enforce the merger agreement at the agreed price and terms."
Musk's move to buy Twitter has been brewing for months now, with the billionaire's offer being accepted on April 25 for $44 billion. He's since been vocal about the changes he would make on the platform, which include unbanning former president Donald Trump and taking the company private.
"Free speech is the bedrock of a functioning democracy," Musk said in a statement communicating his intentions for the platform, "and Twitter is the digital town square where matters vital to the future of humanity are debated."
For now, though, what would be a landmark deal is far from certain.
Blogroll image credit: Jim Watson/Getty Images.
Kat Bailey is a Senior News Editor at IGN as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.
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Musk's ongoing complaints were revealed in a letter to Twitter dated June 6 that was disclosed in a filing with U.S. Securities and Exchange Commission [SEC]. In the letter, Musk's lawyers claim that Twitter hasn't done enough to reveal the true number of spam bots and fake accounts on the platform, which the company claims hovers around 5 percent of total users.
"Based on Twitter’s behavior to date, and the company's latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement," Musk's lawyers wrote.
"This is a clear material breach of Twitter's 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."
Musks has previously said that that his buyout deal with Twitter "cannot move forward" until he is satisfied with its data on fake accounts, which he claims is around 20 percent. When Twitter CEO Parag Agrawal weighed in on the subject, Musk responded with the classic poo emoji.
Twitter responded to Musk's latest broadside by essentially holding the billionaire's feet to the fire, reportedly saying it "intends to close the transaction with Elon Musk and enforce the merger agreement at the agreed price and terms."
Musk's move to buy Twitter has been brewing for months now, with the billionaire's offer being accepted on April 25 for $44 billion. He's since been vocal about the changes he would make on the platform, which include unbanning former president Donald Trump and taking the company private.
"Free speech is the bedrock of a functioning democracy," Musk said in a statement communicating his intentions for the platform, "and Twitter is the digital town square where matters vital to the future of humanity are debated."
For now, though, what would be a landmark deal is far from certain.
Blogroll image credit: Jim Watson/Getty Images.
Kat Bailey is a Senior News Editor at IGN as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.
Continue reading...