Twitter’s Delay in Providing Information on Spam Accounts Might Lead To Elon Musk Terminating the Deal

Vignesh Karunanidhi
Twitter’s Delay in Providing Information on Spam Accounts Might Lead To Elon Musk Terminating the Deal
Source: Daily Excelsior

Elon Musk believes that Twitter’s delay in providing information about fake and spam accounts is a clear violation and breach of the merger agreement.

Musk wrote in a securities filing on Monday that by withholding the information, he believes that Twitter is “actively resisting and thwarting his information rights.”

Elon Musk says that Twitter’s refusal is a breach of the merger agreement

Elon Musk had said he wouldn’t move forward with the agreement unless Twitter could prove that spam bots constitute less than 5% of its total users.

When evaluating everyday users, Twitter Chief Executive Officer Parag Agrawal has indicated the number of bogus accounts is less than 5%, a statistic the firm has previously cited in quarterly filings. Musk stated in the filing on Monday that he disagrees with Twitter’s assessment.

Source: The Indian Express

The filing states that the social media giant is refusing to provide information that Elon Musk has requested from May 9, 2022.

“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.”

According to the filing

According to the merger agreement, Twitter is required to provide the requested data, which is necessary for further processing and closing of the transaction.

“Twitter must also provide reasonable cooperation in connection with Mr. Musk’s efforts to secure the debt financing necessary to consummate the transaction, including by providing information “reasonably requested” by Mr. Musk.”

According to the filing

As the filing states, the requested data is important for Elon Musk to transition Twitter’s business to his ownership and move forward with the agreement. The filing also stated that if Twitter is confident in its claim that only less than 5% of its total users are spam accounts, Musk doesn’t understand Twitter’s reluctance to provide the required estimates.