Elon Musk Wants Out Of Twitter Deal

NEW YORK CITY – Elon Musk has sent Twitter Inc (TWTR.N) an additional letter of deal termination after the world’s richest person subpoenaed a whistleblower for documents on how the social media company measures spam accounts.

In July, Musk rejected a RM196.97 billion bid for Twitter, claiming that the company misled him and regulators about the true number of spam or bot accounts on the microblogging platform.

According to a court filing on Monday, Musk has requested information from whistleblower and former Twitter security head Peiter Zatko, primarily regarding how the microblogging site measures spam accounts.

A famed hacker known as “Mudge,” Zatko said in his complaint that became public last week that the company falsely claimed it had a solid security plan and prioritized user growth over reducing spam.

Following the disclosure, Musk’s legal team said allegations on certain facts, which were known to Twitter prior to July 8 but were not disclosed to them, have come to light that provide additional and distinct bases to end the deal.

The subpoena to Zatko comes in the run-up to a five-day trial at the Delaware Court of Chancery set to begin on Oct. 17.

While Musk wants to terminate the deal, Twitter is asking Chancellor Kathaleen McCormick to order him to buy it for the agreed RM242.63 per share.

Meanwhile, an additional termination notice dated Aug. 29 was delivered in case the July 8 notice was determined to be invalid for any reason, according to a regulatory filing by Musk on Tuesday. – Reuters

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