Elon Musk terminates Twitter deal; Twitter plans to sue

Elon Musk buys Twitter

Elon Musk has discontinued the Twitter acquisition, citing the reason that the platform has failed to provide information on spam and fake accounts and has provided an inflated number for the daily active userbase.

Twitter has failed to provide the data and information, after two months of repeated requests, according to the motion filed by Skadden, Arps, Slate, Meagher & Flom LLP on behalf of Elon Musk. The letter notes that Musk and his financial advisors at Morgan Stanley had requested information on the following data points:

  • Information related to Twitter’s process for auditing the inclusion of spam and fake accounts in mDAU
  • Information related to Twitter’s process for identifying and suspending spam and fake accounts
  • Daily measures of mDAU for the past eight (8) quarters
  • Board materials related to Twitter’s mDAU calculations
  • Materials related to Twitter’s financial condition

The requested information data points are not limited to the ones listed above.

Also Read: Twitter launches Campaign Planner for advertisers

The letter also states that the information provided by Twitter on certain requests came with “strings attached,” such as use limitations or other artificial formatting features, and this information was minimally useful for Musk.

Citing these reasons, Elon Musk has filed a motion with SEC to terminate the Merger Agreement and abandon the transaction contemplated and has sent out the formal notice.

Twitter has appointed a US-based law firm Wachtell, Lipton, Rosen & Katz LLP, to sue Elon Musk and get the transaction completed, according to multiple news reports citing sources close to the matter.

The social network has not officially announced or made any statements related to the matter, and the law firm declined to comment outside business hours on Reuters’ request.

Meanwhile, Elon Musk seems to be bent on receiving the information he requested one way or the other.