Elon Musk Warns Of Terminating Twitter Deal If Company Doesn't Provide Fake-Account Data

The letter said that Twitter was in a "clear material breach" of its obligations and that Musk reserves all rights to terminate the merger agreement

In March, Elon Musk said he would put the deal "temporarily on hold", while he waits for the social media firm to provide data on the proportion of its fake accounts. ( Image Source :Getty )

Tesla Chief Executive Officer (CEO) Elon Musk has issued an warning saying that he may terminate the $44-billion deal to takeover Twitter Inc if the social media platform fails to provide data on spam and fake accounts, said Reuters.

The world's richest person said this in a letter to the company on Monday, according to the report by Reuters. The letter said that the micro-blogging platform was in a "clear material breach" of its obligations and that Musk reserves all rights to terminate the merger agreement.

However, this is not the first time Musk has issued warning on Twitter deal. Earlier in March, Musk said he would put the deal "temporarily on hold", while he waits for the social media firm to provide data on the proportion of its fake accounts.

The letter mentioned, "Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Musk's own analysis of that data will uncover."

The letter by Musk's lawyers said, "Musk believes the company is actively resisting and thwarting his information rights." 

On Monday, shares of Twitter were down 5.5 per cent at $37.95 in pre-market trading.

Meanwhile, Twitter on last Friday said that the waiting period under the HSR Act for Musk's $44-billion acquisition of the firm has expired. Now, the completion of the deal will be subject to the remaining customary closing conditions, including approval by the stockholders of Twitter and the receipt of applicable regulatory approvals, the company added.

The HSR Act or the Hart-Scott-Rodino Antitrust Improvements Act of 1976, requires the parties to report large transactions to both the Federal Trade Commission and the US Department of Justice Antitrust Division for review.