- Elon Musk feels Twitter has violated the merger agreement by delaying user information.
- According to Twitter CEO Parag Agrawal, there are less than 5% of fake accounts.
Accusing Twitter Inc. of refusing to provide him with details regarding its spam bot accounts, Elon Musk has threatened to terminate his $44 billion deal to acquire Twitter. When it comes to reporting false and spam accounts, Elon Musk feels Twitter has violated the merger agreement by delaying user information. Twitter is “actively resisting and thwarting his information rights” by withholding the data, Musk claimed in a securities filing on Monday.
Merger Agreement Compliance
Elon Musk has previously said that he would not proceed with the arrangement unless Twitter could verify that spambots comprise fewer than 5% of its overall users. According to Twitter CEO Parag Agrawal, there are less than 5% of fake accounts, who has previously said this in quarterly disclosures on the service. On Monday, Tesla CEO Elon Musk declared that he disagrees with Twitter’s conclusion.
According to the filing:
“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 a court filing, Elon Musk has demanded information from May 9, 2022, but the social media company has refused to disclose it. Twitter must comply with the merger agreement terms and supply the relevant information for the deal to proceed and be completed.
For Elon Musk’s agreement to proceed, he needs the data sought in the petition, according to the paperwork. According to the filing, Twitter’s unwillingness to offer the requisite numbers is something Musk does not comprehend.
