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Musk sends fresh letter to scrap Twitter deal after whistleblower claims

Published 08/30/2022, 07:03 AM
Updated 08/30/2022, 01:18 PM
© Reuters. FILE PHOTO: Elon Musk's twitter account is seen on a smartphone in front of the Twitter logo in this photo illustration taken, April 15, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Elon Musk has sent an additional letter of deal termination to Twitter Inc (NYSE:TWTR) to include a recent whistleblower complaint from former security head of the social media firm as another reason to scrap the $44 billion deal.

Last week, Peiter Zatko, a famed hacker known as "Mudge", said in his complaint that Twitter prioritized user growth over reducing spam and falsely claimed it had a solid security plan.

If the allegation are true, then Twitter has breached some of the provisions of the merger agreement, Musk and his legal team said in a letter dated Aug. 29.

Twitter, however, said in its regulatory filing the fresh termination notice was invalid and wrongful under the deal terms.

Musk has also subpoenaed Zatko, seeking information mostly about the way the microblogging site measures spam account.

Musk decided to terminate the deal in July, saying the company misled him and regulators about the true number of spam or bot accounts on the microblogging platform.

His legal team said allegations on certain facts, which were known to Twitter prior to July 8 but were not disclosed to them, provide additional and distinct bases to end the deal, according to a regulatory filing by Musk on Tuesday.

The latest turn of events comes as the two sides head to a five-day trial at the Delaware Court of Chancery set to begin on Oct. 17. Twitter is asking Chancellor Kathaleen McCormick (NYSE:MKC) to order Musk to buy it for the agreed $54.20 per share.

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Twitter shares were down 2.5% at $39.02 before the bell.

Latest comments

Elon love to be in centrum litthe girl
It is so easy to show how leftism s just a bunch of children throwing a tantrum. When Musk said he would buy Twitter they said he should not be allowed to and it is a "threat to democracy" and all the pink hairs at Twitter would quit if he buys it, then when he says he wont because the site is mostly bots then they throw a tantrum saying he should be forced to buy Twitter and he is a coward for not buying it and that they will take him to court to force him to buy it! Leftists have less brain cells than a *******cone.
it's not the brain cells although that is definitely a reason. but the main issue with leftist is their hate and anger and frustration and envy with the hard working good hearted middle class white men
you sound like a Racist. Shame on you. White men arent the only ones that Work hard.
 Gary ironically has demonstrated our point well, Gary is a typical angry br.aindead leftist.
musk can ********a nut
Did musky pay a Whistleblower to be able to scrap the deal?Smart. He will get toasted in the court.
looks like musk bit off more than he can chew. I hope the court rules in favor of Twitter and makes this arrogant narcissist buy the company.
nah, the deal is off (not that it was really ever on), the law suit is about whether Musk pays the $1bn penalty for backing out of the deal
I like the way that man does his things
you mean like making a bad investing decision and then try to weasel his way out of it?
winning is winning
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