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In yet another face off that could potentially ruin Elon Musk Twitter deal proposal, the Tesla CEO detailed his reservations in a letter on Monday. Furthering his objections to the way Twitter goes about handling fake accounts, Musk raised the issue in an SEC filing.
‘Obligated Under Merger Agreement’
Musk felt Twitter was transparently refusing to comply with its obligations under the merger agreement, referring to data on accounts. He stated that Twitter refused to provide the information to evaluate of spam and fake accounts on its platform. His legal team explained in the letter,
“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.”
The issue of spam accounts on Twitter and Musk’s doubts over their composition first came last month. On May 13, the Tesla CEO temporarily halted the Twitter deal over details supporting the calculation of the account composition. It effectively meant the deal was pending details on whether spam and fake accounts represent less than 5% of users.
The latest letter further stated that Twitter is required to provide the data under terms of the Elon Musk Twitter deal agreement.
Twitter’s Refusal To Provide Data Raises Suspicion, Says Musk
“As Twitter’s prospective owner, Mr. Musk is clearly entitled to the requested data. This is to enable him to prepare for transitioning Twitter’s business to his ownership. Also, to facilitate his transaction financing. To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model—its active user base.”
Musk’s team said Twitter’s refusal to provide data is causing further suspicion. The company is withholding the requested data due to concern for what Musk’s own analysis of that data will uncover, it doubted.
The letter said Musk believes Twitter is actively resisting and thwarting his information rights under the merger agreement. “This is a clear material breach of Twitter’s obligations under the merger agreement.”
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