Elon Musk Sends Second Letter Terminating Twitter Acquisition

The letter follows one sent July, in case the earlier one is deemed invalid, according to a filing.

AccessTimeIconAug 30, 2022 at 10:26 a.m. UTC
Updated May 11, 2023 at 6:48 p.m. UTC

Tesla (TSLA) CEO Elon Musk sent a second letter calling off his $44 billion acquisition of Twitter (TWTR), according to a filing with the U.S. Securities and Exchange Commission Tuesday.

The letter follows one sent in July claiming the information provided by the social media giant was false and misleading.

While Musk offered to acquire Twitter in April, he put his plan on hold the following month, citing concerns about the number of spam or fake accounts on the platform. He scrapped the plan last month, claiming the information provided by the social media giant was false and misleading. Twitter's board, however, said it was confident the agreement would close, adding that it was prepared to take legal action to enforce it.

The new letter is "delivering this additional termination notice in the event that the July 8 Termination Notice is determined to be invalid for any reason," according to the filing.

The letter is not legally necessary to terminate the agreement and the bases it sets out should be be regarded in addition to and not instead those in the July 8 letter, it said.

"... Twitter has challenged the validity of the July 8 Termination Notice and contends that the Merger Agreement remains in force, a position that the Musk Parties are contesting," the letter read.

Twitter shares were down 1.07% at 39.61 as of publication time.

UPDATE (Aug. 30, 2022 11:07 UTC): Adds details from the filing and letter, background information.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sheldon Reback

Sheldon Reback is a CoinDesk news editor based in London. He owns a small amount of ether.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.