Elon Musk is reportedly backing out of his $44 billion deal to purchase Twitter.
The news was revealed in a Friday afternoon filing where the billionaire argued that the social media company was in “material breach” of their agreement.
Musk wrote he wants out of the deal “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 (as that term is defined in the Merger Agreement).”
The Tesla founder also mentions Twitter failed to provide enough data about bots and spam accounts nor did they provide his team with enough information so they could perform their own analysis.
“In short, Twitter has not provided information that Mr. Musk has requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter’s identification, collection, and disclosure of the most relevant information sought in Mr. Musk’s original requests,” the Friday letter said. “While Twitter has provided some information, that information has come with strings attached, use limitations or other artificial formatting features, which has rendered some of the information minimally useful to Mr. Musk and his advisors.”
The terms of the deal require Musk to dish out a $1 billion break-up fee if he does not complete the transaction.
Musk’s decision will likely spark a legal war between him and the social media company.
