Twitter: Musk's Attempt to Cancel Acquisition is 'Invalid and Wrongful'
Elon Musk’s attempt to bail from the Twitter deal is “invalid and wrongful,” according to the social media company.
In a Monday SEC filing, Twitter revealed it sent(Opens in a new window) a letter to Musk’s lawyers that says he—and not the social media company—violated its obligations to the merger agreement.
“The purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties have knowingly, intentionally, willfully, and materially breached the Agreement,” Twitter wrote. Specifically, this includes the Tesla CEO failing to complete the deal and refusing to communicate with Twitter about terminating the acquisition.
According to Twitter, Musk is still obligated to close the deal, citing the conditions he agreed to when the merger was announced back in April.
“The Agreement is not terminated, the Bank Debt Commitment Letter and the Equity Commitment Letter remain in effect, and Twitter demands that Mr. Musk and the other Musk Parties comply with their obligations under the Agreement,” the company added.
So far, Musk hasn’t responded to the letter. But on Friday, he said he was canceling the deal over Twitter's refusal to supply enough information about how it counts spam and fake accounts. Musk claims the social media platform is “dramatically understating” the amount of spam activity on the platform. Hence, he believes Twitter has breached the merger agreement, meaning he can walk from the deal without paying a $1 billion break-up fee.
However, Twitter says it’s still willing to supply Musk with information about how it calculates the number of spam/fake accounts on the platform. “As it has done, Twitter will continue to provide information reasonably requested by Mr. Musk under
Read more on pcmag.com
