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Twitter Stock Falls With Accusations They Are In Material Breach Over Fake Accounts

“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,” a letter from Musk’s lawyers stated.

Elon Musk says he may withdraw his Twitter takeover bid and he accuses the platform of “material breach” for withholding requested data. Musk’s lawyers sent a letter to Twitter threatening to terminate the deal regarding over-inflated user data.

Left-leaning AP reported on Monday about the situation:

“Elon Musk is threatening to walk away from his $44 billion bid to buy Twitter, accusing the company of refusing to give him information about its spam bot accounts.

Lawyers for the Tesla and SpaceX CEO made the threat in a letter to Twitter dated Monday. That letter was included in a filing from Twitter with the U.S. Securities and Exchange Commission.

The letter says Musk has repeatedly asked for the information since May 9, about a month after his offer to buy the company, so he could evaluate how many of the company’s 229 million accounts are fake.

Shares of Twitter Inc. slid more than 3% Monday, likely incensing Twitter shareholders who filed a suit against Musk late last month for deflating the price of the stock. Shares of Twitter are down 23% in the last month.

A message was left early Monday seeking comment from Twitter.”

And because Twitter refuses to answer- its value is falling into the garbage.

In a letter to Twitter Chief Legal Officer Vijaya Gadde, Skadden attorney Mike Ringler for Musk said that “Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” according to CNBC.
He said further that Twitter must provide the information that is being requested, and that the merger agreement requires it. Ringler disputed Twitter’s claim that they are not responsible to give that data in order to close the deal.“Mr. Musk is entitled to seek, and Twitter is obligated to provide,” Ringler wrote, “information and data for, inter alia, ‘any reasonable business purpose related to the consummation of the transaction.’”
“At this point,” Ringler continued, “Mr. 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 Mr. Musk’s own analysis of that data will uncover.”
The letter, submitted to the SEC, posited that “If Twitter is confident in its publicized spam estimates, Mr. Musk does not understand the company’s reluctance to allow Mr. Musk to independently evaluate those estimates. As noted in our previous correspondence, Mr. Musk will of course comply with the restrictions provided under Section 6.4, including by ensuring that anyone reviewing the data is bound by a non-disclosure agreement, and Mr. Musk will not retain or otherwise use any competitively sensitive information if the transaction is not consummated.”
Twitter shares were down 5 percent on Monday morning trading.

According to Market Watch:
Shares of Twitter Inc. TWTR, -2.23% sank 5.0% in premarket trading Monday, after Elon Musk disclosed that he reiterated his request for information as he evaluates the number of spam and fake accounts on social media company’s platform.

In the letter to Twitter via Skadden, Arps, Slate, Meagher & Flom LLP, Musk, the Tesla Inc. TSLA, +1.38% chief executive who has agreed to buy Twitter for $54.20 a share, said the refusal to provide the information is a “clear material breach” of Twitter’s obligations under the merger deal, and Musk, therefore, reserves the right to terminate the deal if he chooses. Tesla’s stock rallied 3.5% in premarket trading.

“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,” the letter stated.

“To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model-its active user base.” Musk said Twitter’s refusal to provide the information makes him suspicious and raises concerns over what he might uncover from the requested information. Twitter’s stock has shed 7.1% year to date through Friday, while the S&P 500 SPX, +0.40% has lost 13.8%.

Twitter has been used as a grassroots marketing platform for Democrats for years, both elevating fake news and depressing real news- and causing a fraudulent appearance of popular culture- that does not actually resonate with American society- and so this news is important to understand.

If the followers of leftist fake news are not actually the majority- shouldn’t that explain why Americans are often left bewildered about WHO it is who is pushing for the devolution of American society in the first place?

Fake Twitter accounts perhaps?

Kari Donovan

Kari is an ex-Community Organizer who writes about Voter Engagement, Cultural Marxism and Campaigns. She has been a grassroots volunteer with the GOP, on and off for 18 years. She is a Homeschool Mom in North Carolina and loves Photojournalism and Citizen Journalism. @Saorsa1776

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