Twitter violates the rights of Elon Musk as a buyer by not providing him with the requested information about the number of spam and fake accounts on the platform. Twitter's resistance to a fair deal could see the head of the world's most disruptive companies pull out of the deal.
The work of Twitter has long been a reasonable concern among its users. The biggest problem is spam and fake accounts that make using the social network unpleasant. However, this is exactly the area in which Twitter is trying to hide something from prying eyes. Twitter stated that the internal estimate of spam and fake accounts make up less than 5% of the platform's daily users, but some evidence suggests a higher percentage. Musk has put the deal on hold until it can be finalized that this is true, but the platform continues to ignore the request, thereby harming a fair deal and violating the buyer's right to receive information.
In a letter to regulators recently, Musk said he has the right to conduct his own assessment of spam accounts, and he believes spam and fake accounts make up a much larger proportion than the less than 5% of daily users Twitter has publicly reported.
“As Twitter's prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter's business to his ownership and to facilitate his transaction financing. To do both, he must have a complete and accurate understanding of the very core of Twitter's business model - its active user base,” lawyer Mike Ringler wrote in the letter.
“Based on Twitter's behavior to date, and the company's latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights,” the letter said.
“This is 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.”
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.