Elon Musk has found another reason to end his $44 billion (almost Rs. 3,50,000 crore) acquisition deal with Twitter. A latest report suggests the billionaire sent a new termination letter to the social media company, adding Twitter’s alleged payment to a whistleblower to the list of reasons for getting out of the deal. Musk reportedly accused the company of failing to notify him of the payment, which is said to be multi-million dollar compensation. Twitter has denied the claims, the report said.
Elon Musk, head of SpaceX and Tesla, recently wrote a termination letter to Twitter, according to ETN. The billionaire has added the alleged severance payment the company paid to whistleblower Peiter Zatko as another reason to end its proposed $44 billion deal in April to buy the social media platform.
A few days ago, Musk’s attorney accused Twitter of paying whistleblower Peiter Zatko, Twitter’s former head of security, a sum of $7 million (approximately Rs. 56 crore) for not disclosing details about the operational problems within the microblogging company. . Musk’s attorney Alex Spiro made the allegations during a hearing on Tuesday.
Musk’s lawyers have argued that Twitter’s failure to seek the consent of the head of SpaceX before paying Zatko provides a new legal basis for breaking the merger agreement, the ETN report said.
Meanwhile, Twitter has rejected all of Musk’s claims against the company so far. The report quoted Twitter’s attorney William Savitt as saying, “My friend seems to argue that Twitter should have told Musk for free that there was a disgruntled ex-employee who made several allegations that had been investigated and found to be unfounded.”
Kathaleen McCormick, the Delaware district court chancellor overseeing the Musk-Twitter case, has given her a nod to Musk for adding whistleblower disclosures from Zatko in his letter of resignation, according to ETN.