Twitter Inc TWTR shares are trading lower Monday after Tesla Inc TSLA CEO Elon Musk indicated that the social media company breached obligations under the merger agreement by not offering adequate information on bot accounts.
Musk has accused Twitter of "actively resisting and thwarting his information rights" under terms of the agreement, according to a letter the Tesla CEO sent to Twitter on Monday.
"Twitter has, in fact, refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company’s platform," the letter says.
Musk noted that he has made it clear that Twitter's "lax testing methodologies" are inadequate. As a result, he feels he must conduct his own analysis and has requested data that is necessary to do so. Twitter's unwillingness to provide the requested information is "a clear material breach of Twitter’s obligations under the merger agreement."
"Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement," the letter concludes.
TWTR Price Action: Twitter shares have traded between $31.30 and $73.34 over a 52-week period.
The stock was down 3.42% at $38.79 at press time, according to data from Benzinga Pro.
Photo: Steve Jurvetson from Flickr.
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