Elon Musk Cancels Agreement to Acquire Twitter


Twitter did not give Elon Musk appropriate information on spam bots on the network, as promised.

Elon Musk, CEO of Tesla and SpaceX, has backed out of a $44 million contract to acquire Twitter. The CEO declared in a filing on Friday that Twitter had not “complied with its contractual responsibilities” to him, as outlined in their April 26 Merger agreement.

One of these requirements was that Twitter supplies him with all the business-related information he needs for the deal. Specifically, he wanted to know about the frequency of spam bots and accounts on social networking sites.

Musk put the transaction on hold in May, when Twitter estimated that 5 percent of its accounts were bogus. 

The letter describes how Musk repeatedly sought particular data from the platform but was never provided adequate responses to explain the predominance of spam accounts.

According to the complaint, the information the platform did offer “came with strings attached, usage limits, or other artificial formatting characteristics, rendering some of the information marginally valuable to Mr. Musk and his advisers.”

However, the termination may not proceed well. The original merger agreement had a clause for Twitter to compel the billionaire to execute the transaction.

The $44 billion bid to acquire Twitter was initially supported by Binance CEO Changepeng Zhao, but only on the condition that he followed through.

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