Mike Ringler, the attorney of Elon Musk has informed that the billionaire wants to end the $44 billion deal to buy Twitter via a letter sent to the chief legal officer of Twitter. twitter elon musk twitterbursztynskycnbc. The letter further added that Twitter has not complied with the contractual obligations of the deal.
However, Bret Taylor, the board chair of Twitter has tweeted that the company is committed to closing the transaction on the agreed price and terms. He further added that they are planning to take legal action to enforce the merger. Hours after the tweet the shares of the company plunged by 6%.
Twitter earlier claimed that 5% of the monetized daily active user (mDAUs) are spam accounts. Musk wanted to access this information. Ringer has claimed that the company has ignored the request of Elon Musk and has failed to provide this business information. He further added that Twitter breached the merger agreement as it contain “materially inaccurate representations”.
Twitter contradicted the claim by saying that calculating spam accounts from solely public information is not possible. One of their teams of experts has conducted a review and has concluded the figure of 5% spam accounts.
Ringer responded to this claim by saying that the analysis for the same is ongoing. However, most of the public disclosures by Twitter regarding it’s mDAUs are either false or misleading. As per Ringer, Musk has not waived his rights of reviewing data and information, despite public speculation. He chose not to seek the information before entering the Merger Agreement. He has only negotiated access and information rights within the agreement only to review the data pertaining to financial importance for completing the transaction.
As per the agreement, Musk has agreed to pay $1B if backs out. However, Twitter’s Board is trying to hold to his original deal.