Twitter’s chairman says the social media platform will take legal action to enforce the agreement.
Elon Musk said that he would be terminating a $44bn dealTwitter will not allow you to purchase it, as the social media company has not provided any information regarding spam or fake accounts.
In a Filing to the Security and Exchange Commission (SEC) on Friday, Musk’s lawyers said Twitter had failed or refused to respond to multiple requests for information on those accounts, which is fundamental to the company’s business performance.
“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information,” the filing reads.
“Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement,” it also said.
Twitter didn’t immediately respond to The Associated Press or Reuters requests for comment.
The company’s chairman, Bret Taylor, tweeted on Friday evening that, “the Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement”.
The The terms of the dealTesla CEO Musk must pay a $1bn fee to end the transaction.
The Twitter Board is committed in closing the transaction according to the terms and price agreed upon with Musk. It also plans to take legal action to enforce that merger agreement. We are certain that we will prevail before the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
In April, the board unanimously approved Musk’s sale of the platform for $44 billion. This deal sparked controversy and raised questions about its legitimacy. Free speech and misinformationThe most used social media platform.
The agreement’s possible unravelling is just the latest A twist in a story between one of the world’s richest men and one of the most influential social media sites.
Musk, who has over 95 million followers, expressed concern that Twitter was not living up its potential as an open-source platform for free speech.
Last month, Twitter allowed Musk access to its “firehose”, a repository of raw data on hundreds of millions of daily tweets.
The company It was said thenIt stated that it would close the deal at the agreed terms and price. “Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement,” it said in a statement.
Parag Agrawal, Twitter’s CEO, said in May that the social network believes less than 5 percent of its users are fake.
He highlighted, however, the challenges of weeding out bots and accounts being used to spam campaigns in a series if tweets.
“The hard challenge is that many accounts which look fake superficially – are actually real people,” he wrote. “And some of the spam accounts which are actually the most dangerous – and cause the most harm to our users – can look totally legitimate on the surface.”
Daniel Ives, an analyst at Wedbush investment firm, said Musk’s filing on Friday was bad news for Twitter.
“This is a disaster scenario for Twitter and its Board as now the company will battle Musk in an elongated court battle to recoup the deal and/or the breakup fee of $1 billion at a minimum,” he wrote in a note to clients.