According to a letter disclosed on June 6, local time, Musk believes that Twitter has so far failed to provide information regarding bots and fake account data as he requested, a “serious breach” of the acquisition agreement.
Musk’s lawyers said in the letter to Twitter that Musk has the right to terminate the $44 billion acquisition if Twitter refuses to meet its obligation to disclose account data.
Musk and Twitter reached an acquisition agreement in April this year, but in May, Musk suddenly “challenged” Twitter, arguing that the proportion of fake accounts on the platform was at least 20%, not what the company said in its earnings report. 5%, and therefore “suspended” the acquisition.
Some analysts pointed out that if the final deal falls apart, Musk will need to pay Twitter a “breakup fee” of $1 billion. Moreover, according to the acquisition agreement between the two parties, Twitter has the right to force Musk to complete the acquisition.
After the letter was disclosed, Twitter’s stock price plunged in a short-term, falling more than 5.5% at one point. At the close of the day, the decline narrowed to 1.49%, at $39.56, still far below the purchase price of $52.4.
Musk threatened to terminate the deal, accusing Twitter of violating the acquisition agreement by not disclosing fake account data. Click on the video to see what it is!
