Elon Musk fires new Salvo on Twitter, threatening to withdraw deal for company “refusal to comply” with bot request

In his latest Twitter attack, which was delivered via a letter from a lawyer, Elon Musk accused the company of “rejecting” its claims about bots and false account information and threatened to offer a $ 44 billion buyout. dollars.

Twitter agreed to accept Musk’s unsolicited offer in April. There was a steady stream of complaints from Musk in the weeks following the deal, often via his Twitter account. Since the Twitter board was unable to identify alternative applicants when Musk’s offer was submitted two months ago, Musk has gained leverage and sought to lower the company’s final price. Another element in the mix is ​​the drop in the share price of Tesla, a Musk-run electric car company, as investors worry about Musk’s spread. It also runs SpaceX.

Musk focused on the number of fake social media accounts, or “bots,” and asked the company to provide data on the problem.

Musk’s attorney, Mike Ringler, complained to Twitter this morning in a letter to Legal Director Vijaya Gade. Ringler’s main idea was that Musk had the right to receive the requested information due to the funding introduced to complete the transaction. A group of 19 investors was mobilized to support the acquisition. Musk has agreed to pay Twitter $ 1 billion if he decides to walk away from the deal – a huge breakup fee, but not the main obstacle for Musk, who has become the richest man in the world thanks to the surge in money. Tesla’s share price. .

“Mr. Musk will not be required to explain the reason for the data request or the new terms for which the company sought to enforce its contractual rights over the requested data,” Ringler wrote in the letter.

As of May 9, Ringler said Musk had repeatedly inquired about how many of the 229 million Twitter accounts were fake. Instead of large numbers, he added, the company only offered to clarify how it analyzes the accounts to determine their authenticity.

“This is a clear violation of Twitter’s obligations under the merger agreement,” the letter reads, “and Mr. Musk reserves all rights arising therefrom, including the right not to terminate the transaction and to terminate. the merger agreement “.

Despite a positive start to the week for the broader stock market, Twitter shares fell 4% in morning trading to around $ 38 per share on the chart. They lost more than a quarter of their value after the deal was announced on April 25. The total cash transaction brings Twitter’s value to $ 54.20 per share.