The world’s richest person, Elon Musk, faces a court battle after he terminated his Twitter acquisition deal, IgbereTV reports
Musk pulled out of the deal three months after he made a $44 billion buyout offer to Twitter’s board, disclosing his intention to increase his newly acquired stake from 9.2% to 100%.
Since the deal was made public, there have been disagreements over information regarding actual monetizable daily active users (mDAU) on Twitter. The board had previously released market statements claiming about 229 million users, with 5% bot accounts, prior to Musk’s offer.
However, Musk said he doubted the methodology used by Twitter to arrive at the number of users and bot accounts, threatening that if the figure was more than what was initially made public, he would terminate the deal.
He accused Twitter board of denying him access to their user data. The board eventually handed him the data in June, and on Friday, Musk wrote to the company he was pulling out of the deal cause he believes the bot accounts are more than claimed, while citing breach of agreement.
Explaining the situation around the deal, Musk’s lawyer and Skadden Arps attorney, Mike Ringler said, “Twitter has not complied with its contractual obligations”, adding that, “Twitter has failed or refused to provide this information,”
Ringler further revealed that, “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information
