Elon Musk has been trying for weeks to get Twitter to reveal the number fake accounts in his bid to purchase the company. Nearly a month ago Musk said the deal couldn’t happen without Twitter revealing the truth about how many real accounts they have versus fake accounts.
Now Musk is officially accusing Twitter of continuing to hide the data from him and threatening to pull out of the deal if they don’t comply.
Elon Musk may walk away from his $44 billion deal to acquire Twitter Inc (TWTR.N) if the social media network fails to provide data on spam and fake accounts, the billionaire warned in a letter to the company on Monday.
Twitter was in a “clear material breach” of its obligations and that Musk reserves all rights to terminate the merger agreement, the letter said.
This is the first time Musk has threatened to walk away from the deal in writing as opposed to airing it on Twitter’s social media platform.
Twitter had previously 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. read more
Earlier in May, 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.
“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,” according to the letter.
Twitter absolutely should reveal this information because it matters in terms of the value of the company, both for his purchase and for advertisers. Musk shouldn’t have to pay more than the company is actually worth and shareholders have a right to know this information as well.
Twitter’s stock price has already fallen on this news. I hope shareholders force Twitter executives to comply and that Elon is able to complete his purchase. It’s just to important for this to die over something like this.