Threatening to walk away from the $44 Billion deal to takeover social media giant Twitter, tech titan Elon Musk demanded information on the company’s spam bot and fake accounts.
On Monday, lawyers on behalf of Musk made this threat in a letter to Twitter that the company disclosed in a filing with the U.S. Securities and Exchange Commission. The letter read that Musk has repeatedly asked for the information since May 9, about a month after his offer to buy the company, so he could evaluate how many of the company’s 229 million accounts are fake. Musk wants underlying data to do his own verification of what he says are Twitter’s lax methodologies.
Source: Finnoexpert (Courtesy
Earlier on, CEO Parag Agrawal had said that Twitter has consistently estimated that fewer than 5% of its accounts are spam. But Musk has disputed that, contending in a May tweet, without providing evidence, that 20% or more are bogus.
In response to the letter, Twitter said in a statement Monday that it has been cooperatively sharing information with Musk “in accordance with the terms of the merger agreement” and noted that the deal is in “the best interest of all shareholders.
“We intend to close the transaction and enforce the merger agreement at the agreed price and terms,” it added.
According to legal experts, Musk’s latest maneuver shows how he is looking for a way out of the deal or something that will get leverage for a renegotiation of the price. Meanwhile, Musk’s legal team says the company is obligated to provide data for any reasonable business purpose needed to complete the deal.
JOIN US ON WHAT'SAPP, TO GET INSTANT STATUS UPDATES AND BE IN THE KNOW.
CLICK HERE
