Elon Musk Says Twitter In Breach of Buyout Deal
June 06 2022 - 9:40AM
Dow Jones News
By Will Feuer
Elon Musk said Twitter Inc. is refusing to comply with its
obligations under its deal to be bought by Mr. Musk, and that Mr.
Musk has the right to terminate the deal.
Mr. Musk said Twitter has refused to provide the data necessary
to facilitate his own evaluation of the number of spam and fake
accounts on the social-media platform. In April, Twitter accepted
Mr. Musk's $44 billion bid to take over the company and go
private.
In a letter to Twitter Chief Legal Officer Vijaya Gadde, Mr.
Musk's lawyer Mike Ringler said Mr. Musk is entitled to the
requested data, in part so that he can facilitate the financing of
the deal.
"In 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," Mr. Ringler wrote. "At this point, Mr. Musk
believes Twitter is transparently refusing to comply with its
obligations under the merger agreement."
"This is a clear material breach of Twitter's 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," he said.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
June 06, 2022 09:25 ET (13:25 GMT)
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