Billionaire Elon Musk formally filed paperwork on Friday stating that he is terminating his transaction to purchase the Twitter social network for $44 billion, claiming the company did not meet requests to give him relevant business information.
His lawyer's letter to the company's chief legal officer said that Twitter did not meet attempts to share information on bots, fake or spam accounts on the platform.
"Accordingly, for all of these reasons, Mr Musk hereby exercises X Holdings I, Inc’s right to terminate the Merger Agreement and abandon the transaction contemplated thereby, and this letter constitutes formal notice of X Holding I, Inc’s termination of the Merger Agreement pursuant to Section 8.1(d)(i) thereof," it concluded.
The move comes after a tumultuous period of tensions between the company and Mr Musk, with the Tesla and SpaceX CEO tweeting several ideas of how he'd push for free speech on the platform and increase company income.
Twitter says it will take Mr Musk to court for not completing the $44bn merger on which they reportedly agreed.
"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr Musk and plans to pursue legal action to enforce the merger agreement," Bret Taylor, chairman of the company's board, said in a tweet.
"We are confident we will prevail in the Delaware Court of Chancery," he concluded signalling that there could be a legal challenge by the company.
Mr Taylor's tweet was retweeted by Twitter CEO Parag Agrawal on Friday evening.
The billionaire made the offer to buy the company at $54.20 per share in April, which the company and its board agreed to after much internal debate and spirited conversation on the social media forum.
It was eventually approved with the company "committed" to the deal, with terms including a $1bn breakup fee if the merger did not go through. It is unclear if Friday's filling will require Mr Musk to pay Twitter that fee.
The merger agreement's terms also allowed for Twitter to sue Mr Musk if he did not want to complete the deal.
Mr Musk's lawyer argued that data and documents he requested from the company was essential to learning about its performance.
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Mr Musk unveils a new all-wheel-drive version of the Model S car in Hawthorne, California, in 2014. Reuters -
Tesla and SpaceX founder Elon Musk. Getty Images -
Mr Musk with music producer Quincy Jones. AFP -
The wealthiest person in the world with a worth of $274.3 billion, Mr Musk was named 'Person of the Year' by 'Time' magazine in 2021. Getty Images -
Focus on Mr Musk's taxes grew last year as Tesla achieved a rarefied $1 trillion in market value. Reuters -
The billionaire has hit back, saying he does not draw a salary from either SpaceX or Tesla, and pays an effective tax rate of 53 per cent on stock options he exercises. AFP -
Then US president Barack Obama speaks to Mr Musk on a tour of Cape Canaveral Air Force Station in Cape Canaveral, Florida, in 2010. Reuters -
Mr Musk during a television interview after Tesla's initial public offering at the Nasdaq market in New York, in 2010. Reuters -
With former wife Talulah Riley at the 2011 Orange British Academy Film Awards in London. Getty Images -
With Japan's former prime minister Shinzo Abe after a test drive of the Tesla Model S P85D in Palo Alto, California, in 2015. Reuters -
Mr Musk during the 67th International Astronautics Congress in Guadalajara, Mexico, in 2016. EPA -
From left: SpaceX chief executive Elon Musk, Corning chief executive Wendell Weeks, then US president Donald Trump and Johnson & Johnson chief executive Alex Gorsky during a meeting at the White House. AFP -
Mr Musk and former wife Grimes at The Metropolitan Museum of Art in New York City, in 2018. AFP -
Mr Musk leaves a court in New York City, in 2019, after a hearing in a lawsuit brought against him by the US Securities and Exchange Commission. Getty Images -
A prototype of SpaceX's Starship spacecraft is seen before Mr Musk gives an update on the company's Mars rocket Starship in Boca Chica, Texas, in 2019. Reuters -
Mr Musk at the construction site of the Tesla Gigafactory in Gruenheide, near Berlin, Germany, last year. EPA -
Dancing onstage during a delivery event for Tesla's China-made Model 3 cars in Shanghai. Reuters -
Mikey Day as a lawyer, Cecily Strong as a judge, and host Elon Musk as Wario during the "Wario" sketch on NBC's 'Saturday Night Live', in May. Getty Images -
Mr Musk with Armin Laschet, CDU party federal chairman and prime minister of Germany's North Rhine-Westphalia, talk during a tour of the plant of the future foundry of the Tesla Gigafactory in Grünheide, near Berlin, Germany. Getty Images
The Washington Post reported on Thursday that Mr Musk's bid was in trouble following his efforts to authenticate Twitter's data on spam accounts.
"Twitter has and will continue to cooperatively share information with Mr Musk to consummate the transaction in accordance with the terms of the merger agreement," a company statement said. "We intend to close the transaction and enforce the merger agreement at the agreed price and terms."
Mr Musk's lawyer said in his letter that “Twitter has failed or refused to provide this information".
The letter was revealed in a Securities and Exchange Commission (SEC) filing after market close, but Twitter stocks decreased 5 per cent after hours.
