What led to the breach of merger agreement in the Twitter vs Musk battle

Washington, July 09: Elon Musk said that Twitter has not provided the information that he had requested for nearly two months notwithstanding his repeated, detailed clarifications intended to simplify Twitter's identification, collection and disclosure of the most information sought in his original requests.

Musk and his Morgan Stanley advisors had been seeking information on the prevalence of fake accounts since May 09. On May 25 according a filing by the Tesla chief, Musk made it clear that he wanted to understand how many of Twitter's claimed mDAUs were, in fact, fake or spam accounts. The mDAUs he refers to monetisable daily active usage or users.

Musk has alleged that the micro-blogging site is in breach of contract because it did not reveal the information. "Despite public speculation on this point, Musk did not waive his right to review Twitter's data and information simply because he chose not to seek this data and information before entering into the Merger Agreement. In fact, he negotiated access and information rights within the Merger Agreement precisely so that he could review data and information that is important to Twitter's business before financing and completing the transaction," the filing also reads.

He also added that Twitter had provided some information but that has come with strings attached, use limitations or other artificial formatting features, which has rendered some of the information minimally useful.

Meanwhile Twitter chairman Bret Taylor has said that they would take Musk to court. "The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery," he said in a tweet shortly after Musk's termination of the deal.

Musk pulled the plug on the world's biggest tech buyout plan this year so far- the $44 billion deal to take over Twitter. Musk being fully aware about the outcome of the termination of the deal has set the legal stage with Twitter announcing that it would take the world's richest man to court.