The social media giant stated that it has frequently communicated with the billionaire to reach the end of the deal at the initially agreed-upon price.
Elon Musk, the richest man in the world and Tesla CEO, has recently announced that he would be exiting his deal to purchase the social media platform Twitter for $44B, causing Twitter shares to fall 6.6% in pre-market trading.
Back in April, the business magnate made an announcement, indicating that he would be acquiring 100% of Twitter for $54.20 a share. However, it seems as though the world’s most famous investor had a change of heart and is now seeking to abandon the deal.
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Musk decided to take such a drastic step because Twitter has “made false and misleading representations,” indicating that it didn’t provide enough information about its fake accounts.
In other words, Twitter initially stated that there were only 5% of fake accounts on the platform, however, Musk claimed that the number was way higher than that. On top of that, the CEO mentioned that Twitter didn’t exactly disclose how it was suspending spam accounts and was secretive about the daily measures of monetizable daily active users (mDAU) since 2020.
According to the official letter issued to the crypto-friendly social media platform, Twitter has frequently ignored Musk’s requests to receive data on the assessments, regarding fake and spam accounts. The letter dictates:
“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.”
It seems as though Twitter isn’t very happy with Musk’s exit, as the platform noted that it would be doing everything in its power to see the deal going through. The company mentioned that it would be taking legal action against the billionaire if he doesn’t keep his end of the bargain by purchasing Twitter for $44B.
Nonetheless, Bret Taylor, Twitter board chair, stated that Twitter feels confident and will eventually win the case if it goes to the Delaware Court of Chancery.
On another note, earlier in June, Musk pushed crypto payments and mentioned that Twitter should consider integrating payments in digital assets so that people would be able to send and receive money more easily.
