SEC letter to Musk casts doubt on Twitter acquisition tweet

The official profile of Elon Musk on the social network Twitter.

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The Securities and Exchange Commission appealed to the billionaire Elon Musk for more information on the tweet related to his $44 billion acquisition Twitter which he recently tried to revoke, new regulatory documentation Thursday shows.

The disclosure sheds light on how Musk presented his commitment to the deal to the SEC, even as he scoured Twitter for information about spam accounts on the platform. It also shows how the deal could bring Musk back to the agency’s radar.

In a June 7 letter, Musk’s lawyer and Skadden partner Mike Ringler responded to questions from the SEC’s Office of Mergers and Acquisitions sent a few days earlier.

The letter repeats the clarifications the SEC requested from Musk, including whether the previous filing should be amended based on his tweet that the Twitter deal “cannot move forward” while the company will not provide more information about their spam accounts.

“The term ‘may not’ suggests that Mr. Musk and his affiliates are exercising a legal right under the terms of the merger agreement to suspend completion of the Twitter acquisition or otherwise do not intend to complete the acquisition,” the SEC wrote. to submission. “However, we note that Exhibit 13D has not been amended to reflect the apparent significant change that has occurred to the facts previously reported under paragraph 4 of Exhibit 13D.”

Ringler responded at the time that Musk didn’t believe his tweet “caused any necessary amendments to his previously filed Exhibit 13D. Musk’s plans and proposals for the proposed deal at the time.”

Musk, CEO of SpaceX and Teslasince tried to get out of the deal, alleging that Twitter failed to fulfill its end of the contract by not disclosing the information it was supposed to have and by making layoffs without its approval. But twitter stated that he complied with the terms of the contract and stated that Musk is simply trying to back off now that market conditions have changed.

Twitter sues Musk in Delaware clerical court on Tuesday to try to get him back to the original deal.

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