Elon Musk Might Back Off From Twitter Deal

The richest man on Earth, known as Elon Musk, has been mired in controversy lately. From claims of sexual harassment, which he has denied, to leaked emails in which he’s threatening to fire employees, Musk is never away from the headlines for too long.

However, the one thing that had people excited was the centi-billionaire’s Twitter takeover, which stalled once again.

Things between Twitter and Elon Musk are escalating quickly, as the latter has accused the social media website of withstanding his right to information.

Musk’s legal team sends a letter to Twitter

In May 2022, trouble arose in paradise as the Tesla CEO put the Twitter takeover on hold due to the site’s many spam accounts. He asked the social media giant to provide correct information on the number of bots on the website.

Still, instead of complying, Twitter only agreed to provide ‘information about the company’s testing methodologies.’

Now, Musk’s legal team has sent a letter to Twitter, claiming that by not providing accurate information, the company is denying him the right to carry out his analysis, which could result in him walking away from the deal.

The letter further added that by withholding data, Twitter is causing suspicion over what Elon’s investigation of that data will reveal.

While Musk has said that he is fully committed to closing the deal, he legally has the right to call it off. If he does so, he will have to pay a penalty of billion dollars, which is a small sum for him, so in the coming days, we could expect anything.

The SEC’s letter

Elon’s Twitter acquisition has been anything but easy, and before this, the SEC contacted him to inquire why he delayed filing an important form for the takeover. The financial watchdog asked Musk to provide a ‘thorough’ analysis of why he filed a 13G form instead of the required 13D.

Musk has also faced a lawsuit from investors for not disclosing his 5% Twitter stake promptly to save himself $156 million.