Twitter Calls Musk's Latest Deal Termination Letter “Invalid and Wrongful”

Dow Jones2022-08-30

Twitter Inc. responded Tuesday to Elon Musk's latest letter saying he was terminating the deal to buy the social media company, saying it is "invalid and wrongful."

Twitter's stock was down 1.1% in premarket trading, while Tesla Inc.'s stock rose 1.7%; Musk is Tesla's chief executive officer.

Musk's letter, sent late Monday, gave another reason than the one given in a July 8 letter looking to terminate the deal. Musk's latest letter followed a whistleblower report published by the Washington Post that alleged "far-reaching misconduct" at Twitter that Musk said is likely to have "severe consequences" for Twitter's business.

This was Twitter's response on Tuesday: "As was the case with your July 8, 2022 purported notice of termination, the purported termination set forth in your August 29, 2022 letter is invalid and wrongful under the Agreement, including under Section 8.1(d) thereof."

Twitter shares have shed 7.4% year to date through Monday, while Tesla shares have tumbled 19.1% and the S&P 500 has dropped 15.4%.

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