*Cites Fake Accounts Issues
World’s wealthiest man, Elon Musk, has said he is no longer interested in buying Twitters.
Musk gave indication of his decision to break off his agreement on Friday in a letter to the company through the Securities and Exchange Commission.
In the letter, Musk accused Twitter of making “false and misleading representations” about the prevalence of fake accounts on its platform.
According to him, the company has not complied with its obligations to share data and information that he needs for proper evaluation.
“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,” Musk’s lawyer, Mike Ringler, wrote.
Musk penned an agreement to take over the social media company in April. Almost immediately hwever, he began showing signs of hesitation, a development that came to the fore a month later when he made it clear the deal was “on hold” citing uncertainty over how many users are real or not.
Though Twitter agreed to open its more than 500 million real-time tweets posted every day, the two sides have not been able to broker a settled deal prompting speculations on Thursday that it has ran into bad weather’s due largely to the fact that Musk has no faith in the spam figures released by Twitter.
Meanwhile, legal experts believe Musk’s reason for backing out of the $44bn deal deal is not enough for his action. There is a concensus that he risks being slapped with a hefty fine. Already, Twitter has indicated a readiness to sue.
“The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery,” said Bret Taylor in a tweet, referring to a Delaware court that handles corporate disputes.