In an impressive turnaround, Elon Musk ruled out the possibility of buying Twitter this Friday, after his lawyers reported “material non-compliance of multiple provisions”, mainly related to the issue of the amount of spam on the platform.
In a rule filing prepared by his lawyers, Musk said he wanted to end the deal with Twitter because of an ongoing disagreement over the number of spam accounts on the platform. He claimed that Twitter had not provided the information needed to calculate the number of those accounts – which the company has said is less than 5 percent – and that the company had appeared to make inaccurate statements.
“Twitter is in material breach of multiple provisions” of the settlement agreement, Mr. Musk’s lawyers said in the filing, and the company “appears to have made false and misleading representations.”
Mr. Musk’s move sets him up for a protracted legal battle with Twitter. The billionaire signed a legally binding agreement in April to buy the company at $54.20 a share and had foregone due diligence to close the deal quickly. The terms also included a $1 billion break-up fee if the deal fell apart and a clause that gives Twitter the right to sue Musk and force him to complete or pay the deal, as long as the debt financing he has paid. hoarded remains intact.