![\"Elon](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/06\/elon-musk-twitter.jpg\")
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Tesla and Spacex CEO Elon Musk believes that Twitter is in material breach of the merger agreement with him, so he has the right to terminate the deal. The social media giant has refused to provide critical information relating to spam and fake accounts on its platform, Musk\u2019s legal team explained.<\/strong>\n<\/p>\n \n Twitter has \u2026 refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company\u2019s platform.<\/p>\n<\/blockquote>\n \n The letter notes that Twitter is required to provide the data Musk asked for under the merger agreement. Musk\u2019s legal team further argued that the requested data is necessary to form a complete and accurate understanding of Twitter\u2019s active user base, which is \u201cthe very core of Twitter\u2019s business model.\u201d<\/p>\n The Tesla CEO suspects that Twitter\u2019s refusal to comply with the merger agreement obligations could mean \u201cthe company is withholding the requested data due to concern for what Mr. Musk\u2019s own analysis of that data will uncover,\u201d the lawyer detailed.<\/p>\n Furthermore, the Spacex boss believes that Twitter is \u201cactively resisting and thwarting his information rights \u2026 under the merger agreement,\u201d the letter describes, adding:\n<\/p>\n This is a clear material breach of Twitter\u2019s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.<\/p>\n<\/blockquote>\n \n On Monday, a Twitter user explained that the social media giant can be liable for the omission of or misleading material facts. He clarified that waving due diligence does not mean you have to accept fraudulent disclosure, such as an understated number of spam bots.<\/p>\n Musk concurred, tweeting: \u201cCorrect.\u201d<\/p>\n Musk has been complaining about spam bots on Twitter for quite some time. He called it the \u201csingle most annoying problem<\/a>\u201d on Twitter, promising to solve the problem if he is successful in taking over the platform. \u201cIf our Twitter bid succeeds, we will defeat the spam bots or die trying!\u201d he affirmed<\/a>. Since his offer was accepted by Twitter, Musk has been discussing how to solve the spam bot problem on the platform, including using the meme cryptocurrency<\/a> dogecoin.<\/p>\n However, he announced last month that his Twitter buyout deal has now been put on hold<\/a>, tweeting: \u201cTwitter deal temporarily on hold pending details supporting calculation that spam\/fake accounts do indeed represent less than 5% of users.\u201d Musk believes that 20% or more of users are bogus.<\/p>\n According to the merger agreement, Musk will have to pay Twitter a $1 billion fee if he terminates his $44 billion cash deal<\/a> for the social media company. However, this changes if Twitter is in breach of the agreement.<\/p>\n Wedbush analyst Dan Ives believes that Musk is looking to terminate the deal with the social media company. Noting that Twitter will fight the accusation, he tweeted Monday:\n<\/p>\n Our view: Musk looking to walk away from deal.<\/p>\n<\/blockquote>\nElon Musk Could Terminate His $44 Billion Twitter Buyout Offer<\/h2>\n
\nIn a letter<\/a> sent to Twitter Inc. Monday, which was also filed with the U.S. Securities and Exchange Commission (SEC), Elon Musk\u2019s legal team wrote:\n<\/p>\n\n
\n\u201cMr. Musk has made it clear that he does not believe the company\u2019s lax testing methodologies are adequate so he must conduct his own analysis,\u201d Musk\u2019s lawyer added.<\/p>\n\n
\nAccording to Twitter\u2019s proxy statement in April, Musk rushed to give his \u201cbest and final\u201d offer of $44 billion without carrying out any due diligence. \u201cMr. Musk did not ask to enter into a confidentiality agreement or seek from Twitter any non-public info regarding Twitter,\u201d the social media company said in its proxy. Twitter has used this reason to refuse Musk\u2019s request for data.<\/p>\n![\"Elon](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/06\/musk-twitter.jpg\" "\\"Elon")
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