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Saturday, April 18, 2026

Elon Musk Cites Twitter Whistleblower in New Letter Seeking to Scrap Deal - MarketWatch

Elon Musk's lawyers sent a new letter to Twitter Inc., again seeking to terminate his $44 billion agreement to buy the social-media platform, this time citing recent allegations made by whistleblower Peiter Zatko, Twitter's former chief security officer.

Mr. Musk and his lawyers initially sent a letter to Twitter on July 8 seeking to abandon the deal, though Twitter has since challenged the validity of that notice. Last month, Twitter sued Musk over his attempt to walk away from the deal.

In a new letter dated Aug. 29, and made public on Tuesday, Mr. Musk and his lawyers said the allegations in Mr. Zatko's recent whistleblower complaint, if true, would demonstrate a breach by Twitter of certain provisions of the merger agreement.

Mr. Musk's lawyers wrote in the letter that the facts supporting the whistleblower complaint were known to Twitter when they agreed to sell the company to Mr. Musk and when Mr. Musk initially sought to abandon the deal in July.

The allegations "provide additional bases to terminate the merger agreement today if the Musk parties' termination of the merger agreement pursuant to the July 8 termination notice is determined to be invalid for any reason," Mr. Musk's lawyers wrote in the letter. "This also provides a basis for recission."

Mr. Musk's lawyers said the bases for scrapping the deal outlined in the latest letter are in addition to the bases outlined in the July termination notice, which cited concerns over Twitter's estimates about how many...



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