In the filing to the Securities and Exchange Commission (SEC) on July 8 (US time), Musk’s lawyer said that Twitter had failed or refused to respond to multiple requests for information on fake or spam accounts on the platform, which is fundamental to the company’s business performance.
Previously, in May, Musk announced that he had suspended the Twitter deal until the social media company proved that “spam and bot accounts were fewer than 5% of users.”
Musk claimed in the filing that the number of virtual users is in fact more than 5%. The billionaire’s representative wrote:
“Mr. Musk is terminating the merger agreement because Twitter is in material breach of multiple provisions of that agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the merger agreement, and is likely to suffer a company material adverse effect,”
“For nearly two months, Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform,’” reads the SEC filing. “Twitter has failed or refused to provide this information.”
In response, Twitter Board said they were “confident” in the deal and would ask Musk to fulfill his obligations.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement,” Taylor tweeted Friday afternoon. “We are confident we will prevail in the Delaware Court of Chancery.”
As reported, billionaire Elon Musk, in May 2022, said he would acquire Twitter for about $ 44 billion. According to the Tesla CEO, only by doing so, the Twitter team would have enough decision-making authority to address issues related to the platform, from fake news to spam users and bots. Musk affirmed that he will still uphold freedom of expression on Twitter and will bring the social company back to a public company after fixing all shortcomings.
It has also been reported that during the takeover, Elon Musk will also take Twitter CEO position. The crypto community expected that this change would make the social giant be more proactive in accepting crypto instead of just supporting the integration of BTC, ETH wallet addresses, and setting NFT avatars.
To acquire Twitter, the billionaire raised capital from many different organizations, including $500 million from the world’s largest cryptocurrency exchange Binance.
Twitter’s stock price ended Friday at $36.81, down 5% in 24 hours. The current price of TWTR stock is up to 32%, lower than the $54.20 price Musk offered to buy the entire social company.
Follow our channels for more crypto news:
- Cryptory Insights: https://t.me/CryptoryInsights
- Cryptory Global Community: https://t.me/CryptoryCommunity
- Facebook: https://www.facebook.com/CryptoryNetwork
- Twitter: https://twitter.com/CryptoryNetwork