The deal between Elon Musk and social media giant Twitter is off — if Musk gets his way.
Inside a letter to Twitter’s legal department (opens in new tab) On Friday, Musk sought to terminate the merger agreement between him and his backers and Twitter, stating that “because Twitter materially violates several provisions of this Agreement, it appears to have made false and misleading representations on which Musk relied upon entering into the Agreement.” of Merger and is likely to experience a Material Adverse Effect on the Company (as that term is defined in the Merger Agreement).”
The letter was also filed with the SEC (opens in new tab).
The interest reversal comes three months after Musk tried to buy the popular social media platform for $44 billion. (opens in new tab).
At issue is the number of spam or bot accounts on Twitter. Musk believes the platform is full of them and Twitter has insisted its estimate is wrong. They eventually offered to let him examine their data, but Musk wanted an independent audit.
The letter adds that “Twitter failed or refused to provide this information. Sometimes Twitter ignored Musk’s requests, sometimes rejected them for reasons that seem unwarranted, and sometimes claimed to comply by providing Musk with incomplete information or information. unusable.”
Musk had big plans for Twitter, including making it more of a public square, promoting the editable tweets feature (which Twitter is already working on), and more open to unrestricted speech from all sides. There was some concern that he might invite former President Donald Trump back to Twitter (he was banned after the January 6 attacks), but this has never been confirmed.
While Musk had previously put the deal on hold as he tried to gain more knowledge about the number of bots on the platform, he’s been pretty quiet in recent weeks and notably hasn’t tweeted about trying to end the deal.
As to whether the business is actually dead or not, that remains to be seen. Musk could be on the hook for millions and Twitter or shareholders, who would have approved the deal as early as next month, could sue Musk.
Still, it seems unlikely that Musk will enter into a new deal.