Elon Musk, the billionaire CEO of Tesla, wants to end his $44 billion deal to buy Twitter, according to a letter sent by a lawyer on his behalf to Twitter’s chief legal officer on Friday.
In the letter, Skadden Arps attorney Mike Ringler stated that “Twitter has not complied with its contractual obligations.” He claimed that Twitter did not provide Musk with business information he requested. The information Musk had wanted was to assess Twitter’s claims that about 5% of its monetizable daily active users (mDUAs) are spam accounts.
“Twitter has failed or refused to provide this information. 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,” wrote Ringler.
Musk is now officially looking to end the deal with Twitter, with the announcement dropping Twitter shares by 5%.
“While this analysis remains ongoing, all indications suggest that several of Twitter’s public disclosures regarding its mDAUs are either false or materially misleading,” Ringler alleged.
Under the terms of the agreement, Musk agreed to pay $1 billion to the company for backing out.
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