Digital World Acquisition Corp DWAC shares are surging Monday after Tesla Inc TSLA CEO Elon Musk on Friday filed to terminate his proposed deal with Twitter Inc TWTR.
"While Section 6.4 of the Merger Agreement requires Twitter to provide Mr. Musk and his advisors all data and information that Mr. Musk requests 'for any reasonable business purpose related to the consummation of the transaction,' Twitter has not complied with its contractual obligations," Musk's attorney said Friday in a letter attached to the SEC filing.
Musk has claimed that the number of bots or spam accounts on Twitter is much higher than the company indicates, which has ultimately led the Tesla CEO to walk away from the $44 billion takeover deal.
Digital World is set to merge with Trump Media and Technology Group, which operates Twitter competitor platform Truth Social. As Twitter shares fall, DWAC shares are surging higher.
See Also: Elon Musk Breaks Silence On Aborted Twitter Deal With Memes: Here's What He Said
DWAC Price Action: Digital World has traded between $175 and $9.84 over a 52-week period.
The stock was up 11.6% at $27.36 at press time, according to data from Benzinga Pro.
Photo: Gage Skidmore from Flickr.
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