The recent letter from Elon Musk’s lawyers was made public in a regulatory filing on June 6 and was uploaded on the SEC’s website. Addressed to Twitter’s Chief Legal Officer Vijaya Gadde, the letter asserts that Twitter — despite repeated requests from Musk — has failed to provide him with the information he’s seeking and that the company’s replies to these requests have served to “obfuscate and confuse the issue.” The letter adds that Musk has serious reservations about Twitter’s “lax testing methodologies” that helped it arrive at the 5% figure for spam and bot accounts on the platform.
The letter closes with a whopper of a statement. “Based on Twitter’s behavior to date, and the company’s latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement,” it reads. “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.”
That’s some pretty serious language Musk’s legal team is using, but so far, Twitter is yet to respond to this newest development. It will be interesting to see what effect this communication from Musk’s lawyers has on the fate of this much-publicized deal.