Tesla and SpaceX CEO Elon Musk has backed out of his deal to buy Twitter for $44 million.
- In a filing Friday, the CEO said that Twitter “did not comply with its contractual obligations” to them, as detailed in their April 26 merger agreement.
- One such requirement was that Twitter provide it with all information necessary for business purposes related to the transaction. Specifically, they sought information relating to the spread of spam bots and accounts across social media platforms.
- Musk put the deal on hold in May when Twitter released an estimate that 5% of the platform’s accounts were fake. “The Twitter deal temporarily pending details supports the calculation that spam/fake accounts actually represent less than 5% of users,” he said.
- The letter described how Musk had repeatedly requested specific information from the platform, but never received a satisfactory reply, explaining the prevalence of spam accounts.
- According to the filing, the information the platform provided came with “strings attached, usage limitations or other artificial formatting features that made some of the information minimally useful to Mr. Musk and his advisors.”
- However, the termination may not end smoothly. The original merger agreement included a provision allowing Twitter to force the billionaire to complete the deal.
- The $44 billion deal to buy Twitter was originally backed by Binance CEO Changpeng Zhao, but only for as long as he stayed with it.
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