Elon Musk threatens to call off USD 44 billion acquisition of Twitter; here's why

Elon Musk has warned he may walk away from his $44 billion deal to acquire Twitter Inc if the social media network fails to provide data on spam and fake accounts, the billionaire said in a letter to the company on Monday.

The letter said Twitter was in a 'clear material breach' of its obligations and that Musk reserves all rights to terminate the merger agreement.

Earlier in March, the Tesla CEO stated he would put the Twitter deal "temporarily on hold", while he waits for the microblogging firm to provide data on the proportion of its fake accounts.

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According to the letter, Musk is of the opinion that Twitter is 'transparently' refusing to comply with its obligations under the merger agreement. The billionaire added that this is causing further suspicion that the company is withholding the requested data due to concern for what Musk's own analysis of that data will uncover.

"Musk believes the company is actively resisting and thwarting his information rights," the letter by Musk's lawyers said.

(With inputs from PTI)

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