Elon Musk tries to back out of Twitter deal – tech giant reveals it’s holding on

ELON Musk is reportedly threatening to walk away from his Twitter deal.

The richest man in the world recently offered to buy Twitter for $44billion but the purchase hasn’t exactly gone to plan.

1

Cracks began to show in the deal when Musk asked to investigate how many Twitter user profiles actually belonged to spam accounts.

Musk declared the deal was “on hold” while this issue was sorted.

The SpaceX and Tesla CEO doesn’t believe Twitter when it says that only 5% accounts are spam.

According to the BBC, Lawyer Mike Ringler wrote in the letter: “As Twitter’s prospective owner, Mr Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership and to facilitate his transaction financing.

“To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model – its active user base.

The letter continues: “Based on Twitter’s behaviour to date, and the company’s latest correspondence in particular, Mr Musk believes the company is actively resisting and thwarting his information rights.

“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”

It’s unclear when Musk would terminate the deal if he does decide to do so.

The Twitter board accepted his offer in April and the process was moving ahead until it reached this impasse.

Musk could face a lawsuit if he does back out of the deal now.

Twitter said: “Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement.”

Shares in Twitter dropped today as the deal discussions continue.