Elon Musk threatens to scrap $44bn Twitter deal over ‘material breach’

Elon Musk has accused Twitter of committing a “material breach” of his $44bn agreement to buy the company and has threatened to terminate the deal, in the clearest indication yet that the world’s richest man is preparing to walk away from the takeover.

Musk’s lawyers have written to Twitter accusing it of refusing to provide sufficient information about the number of false users on the service, as part of a simmering dispute over the number of spam and fake accounts that populate the platform.

In a letter to Twitter’s chief legal officer, Vijaya Gadde, lawyers representing Musk said he believed the company was “actively resisting and thwarting” his rights to access data and information from the company under the agreement. The letter said Twitter had failed to provide the information requested by Musk since 9 May, adding that a formal response from Twitter on 1 June was insufficient.

The letter concluded with a warning that Musk reserved all his rights under the agreement, including his right to walk away from the deal and “terminate” the agreement.