Elon Musk cites Twitter whistleblower in bid to scrap acquisition


Elon Musk thinks he's found a brand new reason to scrap his Twitter deal.
In a new letter, the Tesla CEO argues recent revelations from a Twitter whistleblower support his efforts to cancel his acquisition of the company. This was his second letter to terminate the deal; the first came in July.
"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," Musk's legal representative wrote.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Peiter Zatko, former Twitter head of security, recently came forward to accuse the company of "extreme, egregious deficiencies."
Musk offered to buy Twitter for $44 billion in April with plans to take the company private, but he has since been trying to back away from the deal. He previously cited concerns over the amount of bots and spam accounts on the platform.
But Musk's legal team now says the whistleblower "alleges far-reaching misconduct at Twitter — all of which was disclosed to Twitter's directors and senior executives, including [CEO] Parag Agrawal — that is likely to have severe consequences for Twitter's business." If the allegations are true, Musk's attorneys allege, Twitter has breached its merger agreement, giving Musk the right to determinate the deal.
Twitter sued Musk in July in an effort to force him to complete the acquisition. "Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away," the company said. A trial is set for October.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
What to know before turning to AI for financial advice
the explainer It can help you crunch the numbers — but it might also pocket your data
-
Book reviews: 'The Headache: The Science of a Most Confounding Affliction—and a Search for Relief' and 'Tonight in Jungleland: The Making of Born to Run'
Feature The search for a headache cure and revisiting Springsteen's 'Born to Run' album on its 50th anniversary
-
Keith McNally' 6 favorite books that have ambitious characters
Feature The London-born restaurateur recommends works by Leo Tolstoy, John le Carré, and more
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year