Elon Musk, a multimillionaire American businessman, has indicated he might end the $44 billion Twitter deal.
In April 2022, the Chief Executive Officer of Tesla and Space X agreed to buy the microblogging service.
In a letter to a Securities and Exchange Commission filing, Musk’s attorney, Mike Ringler, wrote on the businessman’s behalf, claiming that Twitter “has not complied with its contractual obligations.”
He asserted that Musk wasn’t given the crucial business information he wanted from Twitter.
In the past, Musk has expressed a desire to examine Twitter’s assertion that 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.”
Musk’s own preliminary examination of spam accounts on Twitter’s platform forms the basis of the accusation.
Twitter claims that it is impossible to determine the number of spam accounts using only publicly available data and that a review by a team of specialists is required to arrive at the 5 percent estimate.
“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.
In addition, he asserted that Twitter had violated the agreement’s requirement that it obtain Musk’s approval before altering its regular course of business by firing recent employees.
Twitter has not yet responded to the news.
