Musk notifies Twitter of terminating merger agreement on new grounds

MOSCOW, 30 Aug — PRIME. The American entrepreneur and founder of SpaceX and Tesla, Elon Musk, notified Twitter of the termination of the merger agreement on a number of additional grounds other than those set out earlier, follows from the US Securities and Exchange Commission (SEC) document.

“On August 29, 2022, the Reporting Entity’s advisers sent a letter to Twitter formally notifying Twitter that the Reporting Entity was terminating the merger agreement on additional grounds other than those set out in the Reporting Entity’s Twitter letter of 8 July 2022 terminating the agreement about the merger,” the document says.

A spokesman for Musk explained in his letter that the new notice is intended in case the July 8 notice is invalidated for any reason.

Musk’s spokesperson cites Twitter’s failure to comply with its obligations under the 2011 consent ruling as well as its general obligations regarding data privacy, unfair trading practices, and consumer protection laws and regulations as reasons for the termination. In addition, the document refers to the vulnerability of the social network to system failures, as well as misappropriation and violation of intellectual property rights of third parties by Twitter.

In April, Musk offered $44 billion for Twitter, but then demanded to check the company’s data that the number of fake accounts used, including for spamming, does not exceed 5%. According to Musk, the social network underestimated the number of such accounts, and also did not provide sufficient information when requested. He was also dissatisfied with the personnel policy of the company. And later, on July 8, Musk notified Twitter that he was refusing to buy it. The social network filed a lawsuit against the businessman in the Delaware Court of Chancery.

American company Twitter Inc. was founded in 2006. The main product of the company is a social network for exchanging short messages. The headquarters is located in San Francisco, California.