Elon Musk has threatened to walk away from the purchase of Twitter. On Monday, he openly accused the social media company of breaching the merger agreement after they had failed to provide the data on spam and fake accounts that he had requested.
In a letter to Twitter’s head of legal, policy, and trust, Vijaya Gadde, Elon Musk stated that he thought Twitter was “actively resisting and thwarting his information rights” that were outlined by the deal.
According to an attorney representing Musk, he sees this as a clear material breach of Twitter’s obligations under the merger agreement. Musk has the right to not consummate the transaction and terminate the merger agreement.
This comes after Musk demanded that Twitter turn over information about its testing methodologies to support its claims that fake accounts and bots constitute less than 5% of Twitter’s active user base. Musk has also been keen to conduct his own independent assessment based on Twitter data.
Twitter’s shares fell by 5% on Monday, and have been trading well below Musk’s takeover offer of $54.20 per share.
Twitter has responded by saying that it will continue to cooperatively share information with Musk to consummate the transaction.