Elon Musk Walks Away From $44-Billion Twitter Deal, Twitter to Sue

Contact Your Elected Officials
The Epoch Times Header

Tesla CEO Elon Musk has filed to exit from his multi-billion-dollar deal with Twitter over concerns about its spam bots, a Securities and Exchange Commission (SEC) filing shows.

“While Section 6.4 of the Merger Agreement requires Twitter to provide Mr. Musk and his advisers all data and information that Mr. Musk requests ‘for any reasonable business purpose related to the consummation of the transaction,’ Twitter has not complied with its contractual obligations,” reads an SEC filing dated July 8, 2022.

“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,’” the filing continued.

Bot Accounts

Musk’s lawyers argued that, despite multiple requests from the tech billionaire, Twitter failed to provide information on the pervasiveness of the social media platform’s bot accounts that is “fundamental to Twitter’s business and financial performance” and is “necessary to consummate the transactions contemplated by the Merger Agreement.”

The information on fake and spam accounts on the platform, Musk’s lawyers continued, “is needed to ensure Twitter’s satisfaction of the conditions to closing, to facilitate Mr. Musk’s financing and financial planning for the transaction, and to engage in transition planning for the business.”

Additional information Musk has been requesting from Twitter includes the monetizable daily active usage or users (mDAU), Twitter’s process for auditing the inclusion of spam and fake accounts in its mDAU count, the platform’s methods for catching and suspending bot accounts, and materials showing Twitter’s financial condition.

The SEC filing said Musk and his Morgan Stanley advisers have been requesting this information since May 9, but Twitter has “failed to provide much of the data and information” requested.

“Accordingly, for all of these reasons, Mr. Musk hereby exercises X Holdings I, Inc.’s right to terminate the Merger Agreement and abandon the transaction contemplated thereby, and this letter constitutes formal notice of X Holding I, Inc.’s termination of the Merger Agreement pursuant to Section 8.1(d)(i) thereof,” the SEC filing says. X Holdings is a company Musk formed to fund the purchase of the social media platform.

By Gary Bai

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Trump’s Proposal For NATO To Stop Buying Russian Oil & Start Tariffing China Is Unrealistic

Trump proposed on social media that NATO stop buying Russian oil and start tariffing China 50-100% as part of his plan for ending the Ukrainian Conflict.

The Choices We Make

Death and disagreement are inevitable. Love and hate are choices. We will all die. Before we do, what choices will we make?

Elon Musk Speaks at Unite the Kingdom Rally

Tommy Robinson held rally, with Elon Musk appearing virtually, calling attention to leftist politicians who allow foreign immigrants to invade England.

Doxed Democrats Are Getting Fired Left and Left

Not a misprint because a title of “left and...

Hold Up, Feds, Without Federalism, There Is No USA

Federalism is essential to governing the U.S., yet the federal government is undermining it by bribing states to implement unnecessary federal programs.

ABC Halts ‘Jimmy Kimmel Live’ Indefinitely After Charlie Kirk Remarks

ABC has indefinitely pulled “Jimmy Kimmel Live” after the host’s remarks about Charlie Kirk’s assassination drew criticism from the FCC chairman.

ABC Reporter Apologizes for Calling Texts From Kirk’s Alleged Murderer ‘Very Touching’

ABC reporter apologized after describing text messages between Charlie Kirk’s alleged murderer and the man’s boyfriend as “very touching.”

Federal Reserve Cuts Interest Rates for First Time in 2025

The Federal Reserve cut interest rates for the first time this year following its two-day policy meeting that concluded on Sept. 17.

Driver Rams Car Into FBI Pittsburgh Gate in Potential Act of Terror, Official Says

Driver crashes car into FBI Pittsburgh office gate in a suspected targeted attack the agency says may be an act of terror against the bureau.

Rubio Says US Visa Revocations Underway After Charlie Kirk Death Celebrations

SoS Marco Rubio said foreign nationals who made celebratory comments over Charlie Kirk’s assassination will have their U.S. visas revoked.

Trump Supports Designating Antifa a Terrorist Organization

President Trump said he would support designating the antifa movement a terrorist organization in the wake of Charlie Kirk’s assassination last week.

US Conducts Strike on Another Drug Boat From Venezuela: Trump

Three people were killed in a U.S. strike on a Venezuelan drug boat, President Donald Trump announced on Sept. 15.

Trump Signs Memo Targeting Direct-to-Consumer Pharmaceutical Advertising

President Trump signed a memo to ensure drug ads give fair, balanced, and complete information to protect and inform American consumers.
spot_img

Related Articles

Popular Categories

MAGA Business Central