Home News Elon Musk may drop his bid to buy Twitter. What is...

Elon Musk may drop his bid to buy Twitter. What is the reason and what is the risk if he withdraws from the agreement


According to the quoted source, Tesla’s lawyers and the CEO of SpaceX sent a Twitter letter on Monday threatening to cancel the transaction.

The letter was included in a request sent to the US Securities and Exchange Commission (SEC), according to Agerpres.

The document states that Musk has repeatedly requested information since May 9, about a month after submitting his takeover bid to Twitter, to assess how many of the company’s 229 million accounts are fake.

Following the announcement, Twitter shares fell more than 5% in the pre-opening trading session of the New York Stock Exchange.

In the letter, the lawyers claim that Twitter only offered to provide details on the company’s testing methods.

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But they point out that the answer “would be tantamount to refusing to provide the data requested by Elon Musk.”

The head of Tesla wants the data to make his own checks of what he claims are the relaxed methodologies of Twitter.

According to the latest correspondence with Twitter, Musk believes that the company opposes and thwarts its right to obtain information, according to the April merger agreement, the lawyers claim.

“This is a clear violation of Twitter’s obligations under the April Merger Agreement, and Elon Musk reserves all rights arising therefrom, including the right not to complete the transaction and to conclude the Merger Agreement,” the letter reads.

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Elon Musk has spoken out in favor of clearing spam accounts.

Recently, Twitter reported that in the first three months of 2022, fake accounts accounted for less than 5% of active daily users.

If Twitter or Elon Musk withdraw from the agreement, they must pay the other party a $ 1 billion termination fee.

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