Elon Musk's Letter to Twitter, in Which he Cancels his $44 Billion Takeover Bid

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Elon Musk's Letter to Twitter, in Which he Cancels his $44 Billion Takeover Bid
11 Jul 2022
5 min read

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News Synopsis

Elon Musk's $44 billion acquisition of Twitter has been called off, according to a letter filed by his lawyers with the Securities and Exchange Commission on Friday.

Musk's legal representatives Skadden, Arps, Slate, Meagher & Flom LLP accused Twitter's chief legal officer Vijaya Gadde of failing to comply with its obligations to disclose the number of fake accounts in a letter to Gadde.

The lawyers wrote: "Twitter has not complied with its contractual obligations. For nearly two months, Mr. Musk has sought the data and information necessary to 'make an independent assessment of the prevalence of fake or spam accounts on Twitter's platform'."

"This information is fundamental to Twitter's business and financial performance and is necessary to consummate the transactions contemplated by the merger agreement because it is needed to ensure Twitter's satisfaction of the conditions to closing, to facilitate Mr. Musk's financing and financial planning for the transaction, and to engage in transition planning for the business," the filing stated.

It continued: "Twitter has failed or refused to provide this information. Sometimes Twitter has ignored Mr. Musk's requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information."