ELON Musk has terminated a $44billion agreement to purchase Twitter, alleging in a letter that the company “breached” the merger agreement.
The letter was sent on Friday, citing multiple discrepancies and a lack of information Musk required from Twitter to seal the deal.
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According to a letter from Musk, he claimed that Twitter is “in material breach of multiple provisions” of a previous letter of agreement.
Additionally, the letter states that Twitter “appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement.”
The letter goes on to state that Twitter has not complied with its previously stated contractual obligations.
Musk stated that Twitter failed to provide information regarding its spam and bot accounts, which was formally requested in a letter dating May 25.
“The May 25 Letter made clear that Mr. Musk’s goal was to understand how many of Twitter’s claimed mDAUs were, in fact, fake or spam accounts,” the letter states.
“Twitter has failed or refused to provide this information.”
According to the termination letter, Musk sought this specific information three additional times, in letters dated June 6, 2022, June 17, 2022, and June 29, 2022.
“For the past month, Mr. Musk has been clear that he views Twitter’s non-responsiveness as a material breach of the Merger Agreement giving him the right to terminate the Merger Agreement if uncured,” the letter goes on to state.
Additional information relating to the company’s financial situation was also not given to Musk, per the letter.
Shares of Twitter fell by 6% Friday afternoon as news of the termination broke.
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