Tesla CEO Elon Musk has outlined five new reasons why he is terminating his Twitter buyout deal. Musk’s arguments were outlined in a 13D filing submitted to the United States Securities and Exchange Commission (SEC).
Musk’s recent 13D filing amends the Schedule 13D that the Tesla CEO filed on April 5, 2022. The filing featured a letter from Musk, which provided several new reasons for the termination of his Twitter acquisition deal.
Musk’s letter noted that the additional bases for the Twitter buyout deal termination are “distinct from those bases set forth in the Reporting Person’s July 8, 2022 letter to Twitter terminating their Merger Agreement on that date.” According to Musk’s legal team, Twitter might have breached the deal in five more areas, mainly:
- A violation of a consent decree with the FTC;
- SEC filings contained untrue statements;
- A failure to disclose conduct from CEO Parag Agrawal;
- Lawsuits from the whistle-blower complaint; and
- Intellectual property infringements.
“The facts supporting these breaches, which were withheld from the Musk Parties but known to Twitter as of the date of the Merger Agreement and at the time of the July 8 Termination Notice, provided additional bases to terminate the Merger Agreement as of that date and provide additional bases to terminate the Merger Agreement today if the Musk Parties’ termination of the Merger Agreement pursuant to the July 8 Termination Notice is determined to be invalid for any reason,” Musk’s letter noted.
Here's Elon's (Entire) Letter $TSLA $TWTR https://t.co/9ZXTAB6SsZ pic.twitter.com/hAxLX3z3WS
— 🇺🇦 🇪🇺 Umbisam Urges FSDBeta in EU 🇪🇺 🇺🇦 (@Umbisam) August 30, 2022
The recent 13D filing comes just a day after Musk’s legal team subpoenaed former Twitter security chief Peiter “Mudge” Zatko, who is accusing the social media company of having notable shortcomings in the handling of users’ personal data and substandard security practices, among others. Zatko had also alleged that Twitter’s leadership did not really care to find out how many of its users were actually spam or fake accounts.
Musk’s letter took particular note of Zatko’s accusations, which the Tesla CEO noted might have “severe consequences” for Twitter’s business. So far, Twitter has not issued a statement about the matter, though TWTR stock fell as much as about 2.5% during Tuesday’s premarket. Tesla shares, on the other hand, saw the opposite trend, rising as much as about 2.3% in premarket trading.
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