In a letter sent by Elon Musk’s lawyers to Twitter on Monday, the team said Musk may back off from the transaction if Twitter fails to disclose the information Musk needed.
Musk has constantly been asking Twitter to disclose the exact number of spam accounts on it’s platform, but Twitter isn’t sharing so. While it estimates the number to be less than 5%, Musk’s initial findings reveal the count to be more than 20%.
Musk Could Back Off From The Twitter Deal
With the capacity of Elon Musk, the deal between him and his favorite social media platform – Twitter is ought to be settled last month itself. But he put this transaction on hold since he needs more information about Twitter’s business operations to proceed further.
More specifically, Musk has been asking Twitter about the exact bot account number, which Twitter has been hiding for a long time. Though the company has been filing a rough estimate of this number with the SEC every year, Musk demands an exact figure to fight promptly against it.
He believes that spam accounts on Twitter constitute more than 20%, which affects the advertisers’ reach for genuine marketing, thus wanting them to be eliminated. But the CEO of Twitter Parag Agarwal has been saying that the number was less than 5%.
Also, Twitter replied to Musk’s lawyers’ statement that cooperating with Musk “in accordance with the terms of the merger agreement”, and they “intend to close the transaction and enforce the merger agreement at the agreed price and terms.”
Since Twitter has declined or ignored to disclose the accurate information needed, Musk’s lawyers stated this as a “clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.”
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