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Elon Musk Files Motion With SEC To Officially Terminate $44 Billion Twitter Takeover Deal

After months of controversy, the Twitter transition drama involving Elon Musk has come to a standstill as the billionaire wants to terminate the $44 billion deal.

Musk filed a motion with the SEC, asking for the official termination of his Twitter takeover yesterday. The Tesla CEO claims Twitter continuously failed to give accurate details regarding the actual number of spam accounts on the networking platform.

The letter was filed by Musk and his team of investment partners which boldly delineates his intentions of having the deal canceled, citing a break of material related to several provisions that were outlined in his agreement.

Musk and his team accused Twitter of making false statements and also for misleading them this whole time that the agreement was being reached. The filing also spoke about the adverse effects that such an incident will have on Musk and his partners.

It’s the same rant that continued to be repeated, time after time. Musk claims that he’s been asking for more information and data requests that could help make it easier to determine the actual number of bots and spam profiles. But despite his multiple requests, he and his team failed to receive the adequate response that they were seeking.

The filing quotes section 6.4 of the Twitter merger document that states that Musk and all of his respective advisors will be given all data and information upon request so they could verify any business transactions. And since Twitter has failed to comply with the obligations outlined in the contract, they refuse to carry on with the deal.

It has been two whole months since Musk was last seen requesting more details and he claims that the information being provided was very limited and not sufficient enough to reach a conclusion, again another violation of the terms outlined in his contract.

There was also some talk related to how Twitter ignored plenty of requests by Elon Musk and even went about rejecting them without a purpose being provided. On other occasions, the details given were unusable.

As a whole, there was a list of details that were lacking and these were also delineated in the huge filing with the SEC.

For starters, this includes details about audits related to bots and spam alongside data for spotting fake profiles. On the other hand, Twitter failed to give daily measurements of the last eight quarters and materials for mDAU calculations. Lastly, Musk says he didn’t get the respective materials for determining the actual financial situation at Twitter too.

Since Twitter appears to be more than reluctant to share such information during a specified time period, Musk says he’s no longer interested in working with them. And for him and his investors, the reason is good enough and big enough to terminate the entire takeover.

Lastly, the letter highlighted how Musk is not happy with any of the metrics provided by Twitter as it believes that there are so many more fake accounts than what appears to be on the surface.

It’s interesting to note how Twitter has responded to the letter and claims that are now going viral on social media. The company and its executives are turning the whole thing into a legal battle by taking Musk and his team to court.

They claim the company has suffered enough at the hands of Musk and it can no longer withstand such behavior, while another reported how Twitter would now be forcing Musk to move along with the deal.

As it is, Twitter has terminated a number of executives from its firm, not to mention the company’s shares dropped to a new low. Hence, there are reports of a huge war being waged against Musk for the repercussions of a pending transition.


Read next: Twitter Shares More Details On How It Detects And Deletes Fake And Spam Accounts

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