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Elon Musk Threatens To Terminate Twitter Acquisition

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has threatened to withdraw from his agreement to buy in a new letter filed with the

In the , Musk鈥檚 attorneys wrote that Twitter鈥檚 refusal to provide the data Musk wants to conduct his own analysis of the number of spam accounts on the platform is 鈥渁 clear material breach of Twitter鈥檚 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.鈥

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Musk originally agreed to buy Twitter for around $44 billion, or $54.20 per share. Shortly before, Musk became Twitter鈥檚 largest outside shareholder and then submitted an unsolicited bid to buy the company.

Twitter deal delays and suspicion

But since the agreement, the deal has essentially been delayed because Musk wants to do his own analysis of the number of spam accounts on the platform.

Musk believes the number of fake accounts to be higher than Twitter鈥檚 own estimate. Twitter CEO said that Twitter鈥檚 estimate is based on multiple internal reviews, and that external validation isn鈥檛 an option.

鈥淎s Twitter鈥檚 prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter鈥檚 business to his ownership and to facilitate his transaction financing. To do both, he must have a complete and accurate understanding of the very core of Twitter鈥檚 business model鈥攊ts active user base,鈥 Musk鈥檚 attorneys wrote.

鈥淚n any event, Mr. Musk is not required to explain his rationale for requesting the data, nor submit to the new conditions the company has attempted to impose on his contractual right to the requested data,鈥 stated the letter. 鈥淎t this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Mr. Musk鈥檚 own analysis of that data will uncover.鈥

Twitter鈥檚 stock opened at $39.08 on Tuesday, significantly less than the price per share Musk agreed to pay for the company.

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