Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Twitter Falls as Musk Cites Five More Areas Where Agreement May Have Been Breached

Published 08/30/2022, 06:32 AM
Updated 08/30/2022, 06:38 AM
© Reuters Twitter (TWTR) Falls as Musk Cites Five More Areas Where Agreement May Have Been Breached

By Senad Karaahmetovic

Shares of Twitter (NYSE:TWTR) are down about 2.5% after Tesla (NASDAQ:TSLA) CEO Elon Musk sent an additional notice of termination of the Merger Agreement with the social media company.

This morning’s 13D filing amends the Schedule 13D initially filed by Elon Musk with the Securities and Exchange Commission (SEC) on April 5, 2022. The letter includes additional reasons for the termination of the merger agreement.

A new letter to Twitter includes additional bases for the merger termination, which are “distinct from those bases set forth in the Reporting Person’s July 8, 2022 letter to Twitter terminating their Merger Agreement on that date,” is added in the filing.

Musk’s legal team says that the social media company may have breached the deal in five more areas, namely:

  • A violation of a consent decree with the FTC;
  • SEC filings contained untrue statements;
  • A failure to disclose conduct from CEO Parag Agrawal;
  • Lawsuits from the whistle-blower complaint; and
  • Intellectual property infringements.

Today’s filing comes just a day after Peiter “Mudge” Zatko, the former Twitter security chief who came out last week accusing Twitter of weak security practices, was subpoenaed by Elon Musk’s lawyers.

Zatko is scheduled to be deposed on September 09.

On the other hand, Tesla shares are up 2.5% on the new letter sent to Twitter.

Latest comments

why is musk arguing this in the public arena still? what's wrong with this guy? he screwd up! be a man and admit it! be a man and marry your babies mamas! another faulty character, like trump!
Brandon is the moral, great father and human we all should strive to be.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.