Elon Musk sends letter to Twitter explaining why he cancelled buyout deal

Elon Musk, the CEO of SpaceX and Tesla, has sent a letter to Twitter explaining to the social media giant why he cancelled the previously agreed-upon buyout deal. In the letter, the billionaire tycoon stated that recent accusations that have surfaced against the company by a whistleblower have been the chief deterrent. 

Musk’s lawyers stated in the notice sent to the chief of Twitter’s legal team, “Allegations regarding certain facts, known to Twitter prior to and as of July 8, 2022, but undisclosed to the Musk Parties prior to and at that time, have since come to light that provide additional and distinct bases to terminate the Merger Agreement”.

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Peiter Zatko, the former head of security for Twitter, had come out to say that the company has several deficiencies when it comes to the handling of users’ security information and personal data. He also claimed that company executives had tried to conceal data regarding security breaches.

The letter further stated that it is expected that Twitter’s business will take a severe hit after Zatko’s complaint that “alleges far-reaching misconduct at Twitter”. It also pointed out Zatko’s claims that the company is “uniquely vulnerable to systemic disruption resulting from data center failures or malicious actors”, and that top officials of the company have always known about it but “ignored and sought to obfuscate.”

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Earlier in July, the billionaire had sent a notice to the U.S. Securities and Exchange Commission (SEC), claiming that “Twitter has not complied with its contractual obligations” and it has tried “resisting and thwarting” his attempts to know about how many bots or spams are active on the platform. Regarding the same issue, Musk has also subpoenaed Zatko, asking him to reveal details about the company’s security deficiencies.

The Musk vs Twitter trial is scheduled for October 17, 2022 and will take place at the Delaware Chancery Court.