Musk May Cancel Acquisition Deal... "Twitter Fails to Fulfill Obligations," Warns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Elon Musk, CEO of Tesla, has warned that he may terminate the Twitter acquisition deal.

The Wall Street Journal (WSJ) reported on the 6th (local time) that Mike Ringler, Musk's legal representative, sent a letter containing this message to Vijaya Gadde, Twitter's Chief Legal Officer (CLO).

Attorney Ringler pointed out that Twitter has not provided data on fake accounts such as false accounts and spam bots, mentioning the possibility of contract termination.

He emphasized that Musk has the right to receive the relevant data. He stated, "From Musk's perspective, Twitter is not fulfilling its obligations under the acquisition agreement," and added, "Since Twitter is violating its contractual obligations, Musk has all rights including terminating the acquisition agreement."

Musk's side has stated that the fake account data is necessary to secure funds for the Twitter acquisition. However, some analysts suggest this might be a strategy to renegotiate the acquisition price.

Earlier, Musk announced that part of the $44 billion (approximately 55 trillion won) for the Twitter acquisition would be raised through external investments. Subsequently, last month, he secured $7.14 billion from 19 investors including Saudi Arabia's Prince Alwaleed bin Talal. However, Musk then stated that the deal cannot proceed unless Twitter proves that the spam bot rate is below 5%.

This content was produced with the assistance of AI translation services.