Twitter Tumbles As Musk Threatens ‘Breach’ Of Merger Deal Over Fake Account Disclosure
Posted on 06/06/2022 8:10:18 AM PDT by blam
Elon Musk may walk away from his $44 billion deal to acquire Twitter Inc if the social media network fails to provide data on spam and fake accounts, the billionaire warned in a letter to the company Monday.
Twitter was in a "clear material breach" of its obligations and that Musk reserves all rights to terminate the merger agreement, said the letter from the Skadden, Arps, Slate, Meagher & Flom law firm representing the Tesla and SpaceX CEO .
The letter to Twitter, dated Monday, was included in Twitter a filing with the Securities and Exchange Commission.
Earlier in March, Musk said he would put the deal "temporarily on hold," while he waits for the social media company to provide data on the proportion of its fake accounts.
Twitter has downplayed Musk's warning that the deal was "on hold," arguing that the data would help him prepare for his ownership of Twitter, not to carry out due diligence and reopen negotiations.
"Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Musk’s own analysis of that data will uncover," according to the letter.
"Musk believes the company is actively resisting and thwarting his information rights," the letter by Musk's lawyers said.
A self proclaimed free-speech absolutist, Musk has questioned the accuracy of Twitter's public filings about spam accounts representing less than 5% of its user base, claiming they must be at least 20%.
Musk said he needed the data to conduct his own analysis of Twitter users and did not believe in the company's "lax testing methodologies."
(snip)
(Excerpt) Read more at newsmax.com ...
So Twitter refuses to provide the data, Musk walks away from the deal, Twitter’s ownership/policies don’t change. Sounds like a win for Twitter.
Except the board will get sued by the shareholders for huge losses.
Twitter will crash and burn, probably no matter who owns it. The toxic as hell userbase will see to that.
I’m thinking 20% being alt/spam accounts is low too. Probably closer to 50%.
Being one of the most capable industrialists in American history is hard work
“I’m thinking 20% being alt/spam accounts is low too. Probably closer to 50%.”
I think so too when also counting all the directly connected government propaganda information control accounts.
I also think the main reason they are withholding data is to prevent discovery of this direct government connection.
This information will definitely hurt their advertising rates. They should see a substantial drop in revenue.
So, now he’s in a waiting game and Tesla has all the time.
The liberals, their puppet masters and all the others could care less about what happens to that company. If it dies, it dies. They’ll try and find another job and all the blame, in their closed world, will be placed on Musk.
They’d rather the company die, their secrets die with it, than be exposed for the frauds they are.
Not Tesla......my bad
Twitter has all the time
Exactly. I’m starting to think Musk it playing 4D chess with these moves. He never intended to buy twitter, just burn it down
Whoa, Skansen Arps is no slouch.
Twitter is such a nightmare I wish he’d buy it and just shut it down and take the loss. People only end up screwing themselves on there most of the time. Using their real names and whining about health, jobs, politics, tranny crap, and drugs/alc abuse.
And that’s just the low levels. Trump I think really did himself in on twitter.. I’ve seen it compared to online Afghanistan, where everything gets destroyed. Only thing it’s good for is direct marketing that I can tell.
I go on it when someone sends me a link to something. I’ll peruse for a few minutes, maybe make a short comment proving some liberal wrong about whatever they’re whining about. I’m not on there like so many others. I can’t stand to read the drivel that comes out of folks. Nothing but spoiled children for the most part.
And you ain’t wrong in anything you said.
But with President Trump, it was the only way to take his message directly to the people without the filter of the media and the bias....President Trump said this/that/the other thing, this is was nothing but a dog whistle and what he was really saying was MEAN, MEAN, BAD, BAD, YOU SUCK, MEAN, BAD....and millions believed the media.
Elon Musk has offered to buy the FBI for $100 million.
No word on whether Hillary Clinton will sell!
So do you republicans still believe in justice for ALL!
I’m still dumbfounded that EM would waste multiple billions on Twitter. Let the leftards have that sheet stain of a social media platform. Methinks Twitters has already hit its plateau and has future downward trends only.
For Musk I think it’s just a vanity side-project. I’m hoping he concentrates on Starship above all from now on. Twitter has only made a profit for a few quarters ever, and there’s just no way it can make any money.
IIRC, Musk said the same thing. At least 20%.
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