Elon Musk threatens to leave Twitter deal.

 Elon Musk threatens to leave Twitter deal.

Elon Musk

Elon Musk has issued his direct threat so far to withdraw from his Twitter (TWTR) purchase on Monday, openly accusing the communications company of violating the merger agreement by not providing the data he requested on spam and fake accounts. In a letter to the head of law, policy and trust on Twitter, Vijaya Gadde, Musk alleged that Twitter "strongly violates and infringes on its intellectual property rights" as outlined in the agreement. "This is a clear violation of Twitter's obligations under the merger agreement and Mr. Musk reserves all rights arising out of that, including his right to terminate his employment and his right to terminate the merger agreement," Musk's lawyer wrote to the company. . Musk demanded that Twitter change its details about its testing methods to support its claims that bots and fake accounts account for less than 5% of users working on the platform, a number the company has been stating for years in public boilerplate disclosures. Musk also called for his own independent testing based on Twitter data. Twitter shares fell 5% at the start of trading on Monday. Even before the recent development, Twitter's stock was trading under Musk's offer of $ 54.20 per share, which may indicate investors' uncertainty about the ongoing deal. The CEO of Twitter, Parag Agrawal, has stood up about his company’s spam metrics. In a statement Monday, the company said: "Twitter has and will continue to share information with Mr. Musk in order to accomplish the task in accordance with the terms of the merger agreement." The company also said it intended to "close work and implement a merger agreement at the agreed price and conditions." Musk suspected that the actual number of spam accounts may be too high, which could be as high as 90%. Musk once said the acquisition "could not proceed" until the company provided "proof" of its spam metrics. Some Wall Street analysts say the pressure may be a matter of consumer remorse and an attempt to pressure Twitter to negotiate a lower $ 44 billion deal. There have been questions from the beginning about how Musk will support the adoption. Social media stocks have also had a positive impact in recent weeks amidst market turmoil. Monday's letter revealed that Twitter may "be withholding information requested due to concerns that Mr. The letter also stated that Twitter sought to limit access to information by interpreting the merger agreement a bit, so that the provision of information would go beyond the requirements of the Twitter contract. But the letter states that even with reduced Twitter captions, it still has a responsibility to provide details. In a separate fulfillment of the pledges, Twitter previously revealed that Musk had waived a clause in the deal that would have made it easier for him to withdraw from the agreement; without it, Musk could face a sharp rise, as well as hope for a trial. In making a deal to buy Twitter, Musk has made spam bots a platform. He vowed to defeat them or “die trying,” just as he described Twitter as "essential to the future of civilization."