Elon Musk has threatened to withdraw his $44 billion bid for Twitter, claiming that the firm has refused to provide him with details regarding its spam bot and bogus accounts.
In a letter to Twitter dated Monday, Tesla and SpaceX CEO Elon Musk’s lawyers issued the warning, which the firm revealed in a filing with the US Securities and Exchange Commission.
Musk has regularly requested the information since May 9, about a month after his offer to buy the firm, so he can assess how many of the company’s 229 million accounts are phoney, according to the lawyers.
According to Twitter CEO Parag Agrawal, the company has consistently assessed that less than 5% of its accounts are spam.
Musk, on the other hand, has contested this, claiming in a May tweet, without offering evidence, that 20% or more accounts are Fake.
Twitter Inc. shares fell 1.5 percent on Monday, potentially incensing Twitter shareholders who sued Musk late last month for allegedly inflating the stock price. Twitter’s stock has dropped by more than 20% in the last month.
In a statement released Monday, Twitter said it has been exchanging information with Musk “in accordance with the terms of the merger agreement” and that the deal is in “the best interest of all shareholders.”
It went on to say, “We plan to close the acquisition and implement the partnership deal at the agreed price and terms.”
In April, Musk agreed to buy Twitter for $54.20 per share. Several of Musk’s subsequent actions, including a public battle with Twitter’s CEO over phoney accounts on Twitter, have prompted some experts to wonder whether the billionaire intends to use his outspoken concerns to negotiate a lower contract price or maybe walk away entirely.
Twitter may levy a small fee to commercial and government users
According to Musk’s lawyers, Twitter has merely promised to give details about the company’s testing processes. However, they argue that this is “equivalent to ignoring Mr. Musk’s data demands” and is a “material breach” of the merger agreement, which allows Musk the option to cancel the deal if he so desires.
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