Twitter Stands Firm as Elon Musk Threatens to End Agreement
2022.06.07 13:35
Twitter (TWTR) Stands Firm as Elon Musk Threatens to End Agreement
By Senad Karaahmetovic
Elon Musk threatened to abandon the $44 billion deal to buy Twitter (NYSE:TWTR) if the social media company does not provide the required data on spam and fake accounts on the platform.
In the letter sent to Vijaya Gadde, chief legal officer of Twitter, the Tesla (NASDAQ:TSLA) boss accused the social media giant of a “material breach” concerning the previously agreed deal.
Musk has previously hinted that the deal may not happen if Twitter fails to fulfill his requirements, particularly when it comes to data on bot accounts. Shares of numerous technology stocks, including Tesla, declined after Musk issued the warning.
Twitter shares also tumbled, closing the session 1.49% in the red at $39.56 Monday – well below the agreed $52.20 acquisition price.
Musk’s lawyers demanded information from Twitter on bot and spam accounts again, saying the billionaire has every right to walk away from the deal as Twitter was in a “clear material breach” by failing to provide the requested data.
The social media giant responded to the letter, saying it planned to complete the acquisition on the agreed terms.
“Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement,” the company said in a statement.
Twitter stock price is down 1.6% today.
