Elon Musk is threatening to pull out of his $44 billion acquisition of Twitter if the company does not provide more information on how it calculates the number of fake accounts.
In a letter delivered to Twitter on Monday and filed with the Securities and Exchange Commission, Mr. Musk’s lawyers at the law firm Skadden, Arps, Slate, Meagher & Flom argued that Twitter was “actively resisting and thwarting” Mr. Musk’s rights under the terms of his deal to acquire the social media company. His lawyers accused Twitter of a “clear material breach” of its obligations, and said that Mr. Musk had the right to break off the agreement as a result.
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The letter said Mr. Musk had “repeatedly” requested more information about how Twitter measures spam and fake accounts on its platform, and that he had “made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis.” He said Twitter’s cooperation was necessary to secure the debt financing that banks have committed to fund the deal.
