Elon Musk is ending a $44 billion deal to buy Twitter, according to a new Securities and Exchange Commission filing.
“Mr. Musk has asked for the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform'” and did not receive it, filing said,
fake accounts be a sticking point In Musk’s rollercoaster bid to acquire the social media platform, the Tesla CEO had previously threatened to terminate his agreement over concerns about the spread of bots and spam accounts.
In the filing Friday, Musk’s lawyer claimed that Twitter is “a material breach of several provisions of that agreement” and that it appears to have made “false and misleading representations” when entering the agreement.
Twitter President Brett Taylor responded Friday that the board is still committed to the terms of the agreement.
“The Twitter Board is committed to closing the transaction at the agreed price and terms with Mr. Musk and plans to take legal action to enforce the merger agreement,” he said. Twitter, “We are confident we will win the Delaware Court of Chancery.”
Musk struck a deal to buy the platform on April 25 for $54.20 per share, after becoming Twitter’s largest shareholder with a 9.2% stake.
On May 13, he said his plan to buy Twitter is “temporarily on hold”, citing concerns about spam accounts. He quickly clarified that he remained “committed to the acquisition”, although the price of Twitter shares closed down more than 9% on the same day.
Fake accounts make up less than 5% of users, with Twitter saying in a public filing in May that its estimates “may not accurately represent the true number of such accounts, and the actual number of false or spam accounts may be higher than ours.” It’s a guess.”
Musk, a prolific Twitter user with nearly 100 million followers, has yet to publicly comment on his plans to end his acquisition.
If he walks away from the deal, Musk could be on the hook for a $1 billion breakup fee.
Twitter stock is down about 6% in after-hours trading on Friday.
ABC News’ Joshua Hoyos contributed to this report.
This is a developing story. Please check back for updates.