The letter, sent to Twitter, said the businessman would exercise his right to terminate the merger agreement and "reject the deal it envisaged". Musk's representatives clarified that the letter has a formal notice.
"Mr. Musk has reason to believe that the true number of false or spam accounts on Twitter is significantly higher than the "less than 5%" indicated by the social network", - representatives of the entrepreneur explained.
The figure is "drastically underestimated", the authors of the letter insist. Also, the social network did not provide information about the process of checking spam and fake accounts, as well as blocking them.
In addition, Twitter's personnel policy has angered Musk. We are talking about recent layoffs and a temporary stop in hiring.
To top it off, Musk is simply unhappy with the financial state in which the social network is today.
The head of the board of directors of the company, Bret Taylor, said that Twitter intends to seek through the court that the entrepreneur still buys the company.
- The Twitter board intends to close the deal at the price and terms agreed with Mr. Musk, and plans to take legal action to enforce the merger agreement. We are confident that we will win in court in Delaware, - said Taylor .
Recall that the deal was estimated at $44 billion. Musk himself announced this amount. However, after that he demanded that the company's data on the number of fake accounts and data on their blocking be verified. He insisted that their share should not exceed 5%. The requirement was made public by Musk's representatives through the Securities and Exchange Commission (SEC). They accused Twitter of refusing to provide requested access to fake data. They said that by resisting Musk's demands, Twitter violates the businessman's right to receive information.
Thus, Musk literally brought down the company's shares.
“Purchase is temporarily on hold as we await evidence that spam and fake accounts actually represent less than five percent of users”, - the businessman said.
Recall that the page of Musk himself on Twitter has gained more than 100 million subscribers. Thanks to this, the profile of a businessman has become the sixth most popular, second only to former US President Barack Obama, performers Justin Bieber, Katy Perry and Rihanna, as well as football player Cristiano Ronaldo.