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In a new turn of events, the world's richest man, Elon Musk is threatening to pull out of the mega $44 billion deal to acquire Twitter if the company failed to provide the information for spam accounts.
It has been a month since the Tesla chief announced the "temporary hold" on the deal to check for the validity of Twitter's claims regarding spam accounts. People have blamed the billionaire for stock manipulation and he has been sued for the same.
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Twitter has maintained its stance that the number of spam accounts is up to the five percent mark, but Mr. Musk chose to have an independent analysis. In a letter sent to Twitter this morning, Musk's legal team claims that Twitter has failed to provide him with information on the service's spam bot problem and that he's entitled to receive that information under the deal agreement.
"Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company's corresponding obligations) under the merger agreement,” the legal counsel of Elon Musk wrote.
This is the first time that Mr. Musk has threatened to back out of the deal he was pushing for. He has been waiting for the social media company to provide data on the proportion of its fake accounts. Citing the delays and lack of response from the company's side as a valid reason, Elon has claimed that it is a material breach of the agreement and that he has the right to terminate the merger agreement in this case.
On 3rd May, the stock closed at $40.16 which was marginally lower than the opening price that day. However, the stock witnessed a full gap down opening as it opened at $38.19 and touched a low of $37.93. However, bulls put up some resistance as they managed to drive up the stock. It currently trades at around $39.56 per share.
Article by Aman Agarwal.
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