Elon Musk warned that he reserves the right “not to consummate the transaction” of 44,000 million dollars to acquire Twitter in view of the resistance offered by the company to satisfy his demands for information about fake user accounts, spam and bots in what that it considers a breach of the obligations of the owner of the social network.
Shares of Twitter were down more than 4 % after the start of Wall Street on Monday and were trading at $38.59, well below the $54.20 purchase offer price planted by Musk.
In a letter sent by Musk’s lawyers, and published by the United States Securities Market Commission (SEC), the tycoon’s legal team warns that Twitter’s behavior to date makes Musk think that “it actively resists and defeats your information rights under the merger agreement.”
“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all resulting rights, including his right not to consummate the transaction and his right to terminate the merger agreement,” they warn.
On May 13, the businessman decided to temporarily suspend the purchase of Twitter while waiting to learn more details about the proportion of fake accounts and ‘bots’ out of the total number of active users of the social network, although he claimed to be “still committed to the acquisition”.
Twitter had acknowledged in SEC filings that there were “inherent challenges in measuring usage and engagement” from the social network’s large number of total accounts around the world, adding that the metrics may be affected by efforts to reduce malicious activity on the service, including ‘spam’, malicious automation and fake accounts.
K. Tovar
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Source: CNN
