Elon Musk has officially threatened to terminate the $44 billion acquisition deal as Twitter is in clear material breach of the agreement. Musk’s legal team has sent a letter claiming that Twitter has not been able to provide him with information on the platform’s spam bot problem and that he’s entitled to receive that information under the deal’s agreement.
According to the letter, Musk can opt “not to consummate the transaction” due to the alleged breach of contract.
For many weeks Musk has been complaining about Twitter’s spam bot problem. Many say that it appears Musk has developed cold feet and is making strange excuses to escape the acquisition deal he signed barely over a month ago.
Previously, Musk had tweeted that the deal was on hold because of his concerns around spam bots. He said the deal could not go ahead until Twitter validates the accuracy of its spam counts.
But today, Musk officially made a threat to call off the acquisition deal. Many analysts believe the letter hints that Musk is intentionally making efforts to walk away from the deal. No official statement has come from the Twitter authorities.
Twitter claims that less than 5% of its daily users are spam accounts. In May, Parag Agrawal, Twitter CEO, had clarified that Musk had been provided with an explanation of how the platform generates its spam estimates. But it could not convince Musk, reports say.
