(NEW YORK) — Elon Musk is terminating his $44 billion deal to buy Twitter, according to a new Securities and Exchange Commission filing.
“Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform'” and did not receive it, the filing stated.
“Mr. Musk is terminating the Merger Agreement because 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, and is likely to suffer a Company Material Adverse Effect,” Musk’s lawyers wrote in a letter to Twitter’s Chief Legal Officer Vijaya Gadde.
Musk claims that Twitter is misleading investors and users about the number of automated accounts on its platform, which the company has long estimated to be under 5 percent. He demanded the real number and pulled the plug when Twitter failed to comply.
Twitter says it will sue Elon Musk to complete the $44B merger he just rejected and is “confident” it will prevail.
This is a developing story. Please check back for updates.
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