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Elon Musk Threatens To Pull Out Of $44B Twitter Deal

Fake profiles on the platform are giving Elon Musk the incentive to exit Twitter deal completely.

Elon Musk

Elon Musk has made it very apparent that he believes Twitter has breached their way of conduct.

In a letter filed with the Securities and Exchange Commission, Elon Musk’s Attorney accused Twitter of refusing to provide him with information “to facilitate his evaluation of spam and fake accounts on the company’s platform.”

Twitter pins the number of fake accounts on the platform to be around 5%.

Elon Musk doubts Twitter fake account statistics

Musk has overtly doubted this figure, therefore now it seems he is using this to withdraw his takeover bid.

The SEC letter states:

“Based on Twitter’s behavior to date, and the company’s latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement. This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”

In a written statement, a Twitter spokesperson stated that the company “has and will continue to cooperatively share information with Elon Musk,” going to add that “we intend to close the transaction and enforce the merger agreement at the agreed price and terms.”

It was during May of this year, that Musk claimed the entire Twitter deal was on hold, until information was given to prove that this figure of spam accounts are 5% as the platform stated.

The CEO of Twitter Parag Agrawal actually responded to Elon Musk with a lengthy tweet thread, trying to address the difficulties in detecting and removing suspicious accounts.

To which Musk responded with:

If Musk tries to back out of the deal, Twitter may sue him and pressure him to complete the sale. Moreover, he may also be required to pay a $1 billion fine.

Do you think Musk will go ahead with the acquisition or will he exit completely? Share your thoughts on our Twitter @itpliveme.