Elon Musk’s takeover of Twitter has hit another speed bump – the deal is on hold as Musk and his team are trying to estimate the percentage of fake accounts (bots), but need access to do so. to additional data from the company. Data that Twitter apparently refused to provide.
Now Musk is threatening to abandon the deal. In a letter to the SEC, he writes his attorney, Mike Ringler “This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights arising therefrom, including his right not to complete the transaction and his right to terminate the transaction. ‘merger agreement “.
The moot point is that official Twitter documents claim that less than 5% of the accounts are fake, but according to the letter: “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 requires is needed to do so.”
According to the letter, “At this point, Mr. Musk believes that Twitter is transparently refusing to fulfill its obligations under the merger agreement.” If you’re curious, you can read it in full on the SEC website.
Twitter’s methodology and test results are based on internal data available only to Twitter itself. Without this data, an accurate estimate of the percentage of bot accounts is impossible.
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