The drama of the purchase of Twitter by Elon Musk is still going on. After postponing the acquisition process, Musk is now threatening to cancel the agreement.
Musk said Twitter had committed a clear violation of their $ 44 billion acquisition deal. In a letter sent to Twitter, Musk's legal team claimed Twitter failed to provide information about bot issues on its platform even though it was entitled to such information.
"Mr. Musk believes the company is actively denying and violating its information rights (and company -related obligations) under the merger agreement," the letter wrote, as quoted by The Verge, Tuesday (7/6/2022).
The letter also said Musk could have withdrawn and not completed the transaction due to alleged breach of contract. If Musk cancels the deal, he will have to pay a penalty of USD 1 billion.
Since announcing his plans to buy Twitter, Musk has continued to complain about spam accounts and bots on the social media platform. One of the visions of the richest people in the world after buying Twitter is indeed to eradicate bot accounts and verify all its users are human.
Twitter previously claimed the number of bot accounts on their platform was less than 5% of the total number of users. But Musk doubted the claim and decided to suspend the deal until Twitter proved the accuracy of the numbers.
A few weeks after the suspension, Musk then issued his official threat to cancel the acquisition process. Some Wall Street analysts speculated that the threat was a way for Musk to get out of the deal or to lower the value of his acquisition.
Twitter spokesman Brian Poliakoff said his party had worked with Musk and would continue to share information. “We intend to complete the transaction and enforce the merger agreement at the agreed price and terms,” Poliakoff said.