Elon Musk’s acquisition of Twitter is yet to be finalised due to Musk’s concerns over the number of fake accounts on the social media platform.
Tesla’s CEO Elon Musk has accused social media giant Twitter of resisting and thwarting his right to information on fake accounts on the platform. The Tesla boss said this earlier on Monday while addressing the company’s shareholders.
In a letter published earlier today, Musk called the efforts a clear material breach of the terms of their merger agreement. The letter, signed by Skadden attorney Mike Ringler, says;
“Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”
He added that;
“Twitter’s latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written materials or verbal explanations, is tantamount to refusing Mr. Musk’s data requests. Twitter’s effort to characterize it otherwise is merely an attempt to obfuscate and confuse the issue. Mr. Musk has made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis. The data he has requested is necessary to do so.”
Last month, Elon Musk said his $44 billion acquisition of Twitter will not be completed until he had more information about the number of fake accounts on the platform. Many analysts believe it is a move by the Tesla boss to lower the acquisition price.
At the time, Musk said his team would do a random sampling to calculate the number of fake accounts. However, Twitter’s CEO later explained that nonpublic information is important to get an accurate count.
The shares of Twitter are down by 3.76% today as the market reacts to Elon Musk’s letter. TWTR is down by nearly 10% since the start of the year as tech companies suffer losses in recent months.
