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| Elon Musk cancels Twitter acquisition for $44 billion |
Tesla CEO Elon Musk said he has called off a $44 billion acquisition of Twitter, adding that Twitter has not provided any information about fake accounts on its platform.
Twitter shares fell 6 percent in post-close trading.
In a note to regulators, Musk's lawyers said Twitter's failure or refusal to respond to repeated requests for information about fake accounts or spam on the platform is critical to the company's business.
Musk has threatened to block the deal unless the company can prove that less than 5% of users who see ads on the social media service constitute fake accounts.
Twitter CEO Brett Taylor said the board intends to take legal action to enforce the merger agreement. "The Twitter board is committed to completing the transaction at the price and terms agreed with Mr. Musk," he said.
Musk canceled the $44 billion deal he signed last April, opening the door to a legal battle with Twitter over the cost of canceling the deal, which could have cost $1 billion or more.
“Mr. Musk is exercising his right to cancel and withdraw from the agreement,” his attorney said in a Twitter message he sent a copy of to the Securities and Exchange Commission.