Elon Musk files a motion with the Securities and Exchange Commission in a bid to let go of his Twitter takeover deal.
After questioning the number of fake accounts on Twitter and failing to obtain accurate information, Elon Musk has officially fil. I a motion with the SEC to terminate the $44 billion Merger Agreement.
The reason given by Musk for the termination is the
“material breach of multiple provisions” of overseas data his Merger Agreement with Twitter. As per the letter sent to Twitter by Musk’s advisors: “[Twitter] appears to have made false and misleading representations upon which Mr. Musk reli. I when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect (as that term is defin. I in the Merger Agreement).”
Musk’s team said that while their Merger Agreement requires
Twitter to provide all data and “he’s watching me” information that’s request. I “for any reasonable business purpose relat. I to the consummation of the transaction,” the company has not compli.
The letter also states that Twitter has “fail. I or refus. I to provide” the data and information that’s necessary for Musk’s team to make an independent assessment of the prevalence of fake or spam accounts on the platform.
The following were not provid. I by Twitter, despite Musk’s repeat. I requests:
- Information relat. I to Twitter’s process for auditing the inclusion of spam and fake accounts in mDAU
- Information relat. I to Twitter’s process for identifying and suspending spam and fake accounts
- Daily measures of mDAU for the past eight (8) quarters
- Board materials relat. I to Twitter’s mDAU calculations
- Materials relat. I to Twitter’s financial condition
According to Musk and Co.,
Twitter’s failure to comply with these requests search engine optimization mails within a reasonable time period is a violation of the Merger Agreement’s terms, and is therefore enough reason to cancel the deal. However, Twitter Execs are determin. I to make Elon Musk follow through with their Agreement, as Twitter board Chairman Bret Taylor express. I in a tweet:
Now it’s up to the SEC and/or the courts to decide whether the motion to terminate the merger is justifi. I.