“Twitter has breached none of its obligations under the agreement, and Twitter has not suffered and is not likely to suffer a company material adverse effect,” Savitt wrote. “Twitter reserves all contractual, legal, and other rights, including its right to specifically enforce the Musk parties’ obligations under the agreement.”
On July 8, Musk said he was terminating his agreement to take the San Francisco-based company private. The billionaire alleges that Twitter misrepresented user data, claiming the number of spam bots on the platform is much higher than the company has disclosed.
Musk has not offered any evidence of this claim, and Twitter has repeatedly denied this assertion. The social media company reiterated last week that the number of bots on the service was well under 5% of its total daily active users, but Musk said he has been unable to confirm this claim using the data Twitter has provided him.
The fight sent Twitter shares down 11% to $32.65 at Monday’s close, the worst one-day decline in more than 14 months.
The buyout agreement specifies any legal dispute over the deal must be heard in Delaware. By close of business Monday, no suit had been filed by either side over the teetering transaction.
(Updates with details on the deal starting in second paragraph.)
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