Elon Musk Threatens to End Deal With Twitter
Martin Walsh June 6, 2022Tesla CEO Elon Musk is threatening to exercise his “right not to consummate” his acquisition of Twitter and a “right to terminate the merger agreement.”
In a letter from his lawyers to the Twitter general counsel Vijaya Gadde, Musk accused Twitter of “resisting and thwarting” his right to information about fake accounts on the platform, calling it a “clear material breach” of the terms of their merger agreement.
“Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” the letter, signed by Skadden attorney Mike Ringler, says.
“He said his team would do a random sampling to calculate the number of fake accounts, but Twitter’s CEO later explained that nonpublic information would be necessary to get an accurate count. Twitter executives told staff there’s ‘no such thing’ as putting the deal on hold as Musk claimed,” CNBC reported.
“In Monday’s letter, Musk’s lawyer wrote that the merger agreement requires Twitter to provide the data Musk requested and disputed the company’s alleged claim that it is only required to provide information for the limited purpose of helping to close the transaction,” the report added.
“To the contrary, Mr. Musk is entitled to seek, and Twitter is obligated to provide, information and data for, inter alia, ‘any reasonable business purpose related to the consummation of the transaction,’” the letter says.
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https://conservativebrief.com/elon-7-63520/