Elon Musk Finds Another Reason To Run Away From $44 Billion Twitter Deal
Elon Musk has found yet another reason to walk away from the Twitter deal. This time, he has targeted the severance package offered by Twitter to its former executive. The same person recently accused the company of security flaws in the platform.
On Friday, the legal counsel of Elon Musk sent a letter to Twitter where they mentioned the payment of $7.75 million to Peiter Zatko (Mudge). Twitter paid that amount to Mr. Zatko, and that's one of the things Mr. Elon Musk didn't like!
The Payment Was Breach Of The Agreement
According to Musk's lawyers, this payment made by Twitter breached the $44 billion agreement made between the company and Elon Musk. In the original deal, Twitter had agreed that it would not provide any benefits or offer severance payments to any service provider of the company.
In the letter, the attorneys clarified that former Twitter employees are also included in the definition of a Company Service Provider.
This is the 3rd letter in the series of notices of terminations that were sent by Musk to the social media company. The first letter was sent during the month of June - In that letter, Musk claimed that Twitter tried to withhold the data requested by him and also didn't share the real data about spam accounts. The 2nd letter was a letter to the whistleblower Zatko's disclosure for which Elon Musk wanted to stop the Twitter deal.
In short, Elon Musk believes that it is Twitter that breached the agreement by sharing misleading data and doing things that shouldn't have been done.
On the other hand, Twitter believes that Elon Musk has caused damage to the company by offering a deal and then walking away from it without any valid reason. That's why the two parties are also destined to meet each other in a trial that's set sometime in the future.