Whistleblower payment latest reason behind Elon Musk dropping Twitter deal

Published
1

Elon Musk on Friday added a severance payment made by Twitter to a whistleblower to the list of reasons he feels entitled to walk away from his $44 billion deal to buy the social media platform.

A termination letter sent to Twitter accused the firm of not informing him about a multi-million dollar severance payment it made in June to departing security chief Peiter Zatko, who went on to file a whistleblower complaint criticising Twitter’s security practices, according to a copy of the letter filed with the Securities and Exchange Commission.

Musk’s lawyers argued that failing to seek his consent before paying Zatko provides another legal basis to break the merger deal with Twitter he inked in April.

Twitter disagreed.

“My friend seems to be arguing that Twitter should have gratuitously told Musk that there existed a disgruntled former employee who made various allegations that had been inquired upon and found to be without merit,” Twitter attorney William Savitt said earlier this week.

“That doesn’t make any sense.”

Twitter did not respond to a request for comment on Friday.

Musk, the world’s richest man, said in his original termination letter that he was cancelling the deal because he was misled by Twitter concerning the number of bot accounts on its platform, allegations rejected by the company.

In a mixed ruling earlier this week, Kathaleen McCormick, the chancellor of the Delaware court that is overseeing the case, said Musk could add whistleblowing revelations from Zatko that surfaced in August.

But she denied his request to push back the litigation, saying prolonging the suit “would risk further harm to Twitter too great to justify”.

Musk has been locked in a bitter legal battle with Twitter since announcing in July that he was pulling the plug on the purchase of the company following a complex, volatile, months-long courtship.

The five-day trial is due to go ahead beginning October 17 in the Delaware court.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Fixing bond markets
Updated 01 Oct, 2026

Fixing bond markets

Pension funds, insurance companies, mutual funds, retail investors, and eventually, foreign investors must become bigger participants in the market.
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...
Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...