Musk says Twitter is refusing to share data on spam accounts
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The plan of Musk to acquire Twitter has alarmed policymakers across the globe.
Reuters| Reuters
Elon Musk is accused TwitterHe “resisting to and thwarting his right” to access information on fake accounts on the platform. Calling it a clear material breach of their merger agreement, a letterTo the company Monday.
“Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” the letter, signed by Skadden attorney Mike Ringler, says.
Premarket trading Monday saw Twitter share prices fall 5%
Musk wrote on Twitter last monthThe $44 million purchase would be stopped until the buyer had additional information on fake accounts. Some analysts saw this as a bargaining tactic to get a cheaper price.
While he stated that his team would perform random sampling in order to count the fake accounts, Twitter CEO Mark Zuckerberg later clarified that this would not be possible without non-public information. According to a report by Inverse, Twitter executives claimed that they don’t believe there was a way of putting off the deal as Musk stated. Bloomberg.
Musk’s lawyer stated Monday that Twitter must provide data to Musk as per the merger agreement. He also disputed claims that Twitter is required only to give information to help close the transaction.
“To the contrary, Mr. Musk is entitled to seek, and Twitter is obligated to provide, information and data for, inter alia, ‘any reasonable business purpose related to the consummation of the transaction,'” the letter says.
“At this point, Mr. 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 due to concern for what Mr. Musk’s own analysis of that data will uncover,” it continues.
Musk agreed to sign a nondisclosure agreement with anyone looking at the data. If the deal does not close, he will also refrain from using any competitively sensitive information.
Twitter has not yet responded to the request for comment.
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