Elon Musk pulls out of £34bn Twitter takeover citing breaches in contract

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After months of talking about the importance of free speech and changes he may make to Twitter, Elon Musk has senstationally pulled out of a $44bn (£36.5 bn) deal to buy the site outright, reports suggest.

A letter sent by a lawyer on the Tesla CEO's behalf to Twitter's chief legal officer on Friday, July 8, stated that the company didn't keep up its end of the deal.

In the letter, disclosed in a Securities and Exchange Commission filing, Skadden Arps attorney Mike Ringler charged that “Twitter has not complied with its contractual obligations,” as per CNBC.

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Ringler claimed that Twitter did not provide Musk with relevant business information he requested.

Musk now faces a $1bn break-up free after it was written into the original agreement.

This comes after Musk last month threatened to walk away from the deal after accusing the social media company of "thwarting" his requests to learn more about its user base, namely the amount of spam and fake accounts on the site.

“Twitter has failed or refused to provide this information,” Ringler claimed.

“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.”

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Musk has said he believes spam and fake accounts represent a far greater share than the less than 5% of daily users that Twitter reports publicly.

He has been silent on the matter thus far, but did respond to a Twitter thread about bot accounts that "attacked" him with personal insults after a news site ran a story about his personal life.

Twitter's board approved an all-out takeover in April. The BBC reported last month that Musk faces a $1bn break-up fee and possible lawsuit if he opted out of the deal.


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