Elon Musk has threatened to withdraw Twitter for $ 44 billion, accusing the social media company of wanting to know more about its user base.
In a letter to regulators, Musk said he has the right to directly measure spam accounts. In the letter, Musk said he was waiting for further information on the heated debate in the weeks after announcing that the deal had been “suspended.”
Twitter defended its prediction. But Musk said spam and fake accounts are much more common than the less than 5% of Twitter users reported to the public every day.
Advertisement
Read more: YouTube is being chastised by Elon Musk for “nonstop scam ads”
“As the future owner of Twitter, Musk reserves the right to request data in order to prepare to transfer his business to Twitter and to facilitate the financing of transactions. In order to do both, they need to fully and accurately understand the basics of the Twitter business model – the active user base, ”wrote lawyer Mike Ringler in the letter.
“Based on his recent actions on Twitter, in particular the company’s recent correspondence, Mr Musk considers that the company is violating and actively violating its information rights,” the letter reads. “This is a material breach of Twitter’s obligations under the Merger Agreement, and Musk reserves all rights under this Merger Agreement, including the right not to complete the transaction and the right to terminate the Merger Agreement.”
Controversy has again raised the possibility of a takeover, which was approved by Twitter’s board in April.
“Twitter is working with Musk to exchange information to complete the transaction in accordance with the terms of the merger agreement,” Twitter said in a statement. Musk added that he would give up his right to review the deal as usual and, eager to close the deal, plan to complete the purchase at the agreed upon price and terms.
Read more: Twitter has caved in to Elon Musk’s demand for access to its internal data
Musk, who raised the spam account on social media last month, said the deal was canceled but he continued to buy. Twitter responds to Musk’s suspicions about fake accounts
Elon Musk concludes $ 44 billion deal with Twitter
Twitter investor Elon Musk has sued to buy it.
Analysts say the Tesla CEO could use the issue to renegotiate prices or even leave. They said Musk’s decision to bring the issue to social media was unconventional and made it difficult to judge how important it was. Twitter CEO Parag Agrawal responded with emoticons in several tweets, defending the company’s lawsuit.
Musk said he believes bots can reach more than 20 percent of Twitter users. In a letter to the US Securities and Exchange Commission (SEC), the two sides confirmed that they had been in conflict since early May.
Musk said he deserved “reasonable cooperation” in financing the transaction. “Twitter’s offer to provide additional information about the company’s personal testing methods, either through written materials or verbal comments, means that Musk will refuse to request data,” the letter said.
“What I’m trying to explain differently on Twitter is an attempt to hide the problem and confuse it.”
Texas Attorney General Ken Paxton took part in a debate Monday and posted on Twitter that he had launched an investigation into “spreading misinformation about his fake bot account.” Twitter must respond to requests for information by June 27.
Musk’s plans for the company have caught the attention of regulators around the world, and have also raised concerns among investors in Musk’s Tesla electric car maker and rocket company SpaceX. It has attracted foreign investors to help pay for the acquisition and is using shares and loans backed by Tesla shares, which in recent weeks have wiped out the company’s assets, including billions of Tesla, in market turmoil.
This discount makes Mr. Musk even more generous when he tweets $ 54.20 per share. Shares on Twitter traded below $ 39 on Monday, down 3%, but later reached a milestone. After Musk announced that it had bought about 9% of the company’s shares, they had not yet returned to last month’s highs. Suzanne Streeter, chief investment and market analyst at Hargreaves Lansdown, said the letter was “the strongest sign that Tesla’s founders are ready to leave.”
“It’s a phase that investors on Twitter have been putting together for weeks,” he said. “The moment Elon Musk’s random tweets turn into official letters to regulators.” “Given the additional volatility that has plagued the technology sector since Musk’s bid, it is likely to find a lower price even if Twitter provides the data required to support the initial analysis.”