Musk seems committed to taking over Twitter and swinging its message to a more central position, or disgracing the mega platform by showing it to be a mouthpiece for the DNC that inflates or obscures data to manipulate public perception.
According to the Daily Wire, Musk’s legal team is accusing Twitter of violating its deal by withholding information about the number of bots on the platform.”
Musk alleges he is within his rights to terminate the $44 billion deal if the information is not disclosed. Experts warn that if the information is not forthcoming or the Twitter Board reveals that “bots” do manipulate data on the platform, Twitter’s credibility (and value) will plummet.
In late April, Musk alerted the public to the caveat in the deal—that the number of “bots” and “fake accounts” must be disclosed, and must not exceed 5% of the reported number of Twitter accounts.
A post by Sharyl Attkisson noted that Musk estimates that approximately 20% of Twitter accounts are “fake” or “bots.” Twitter claims the maximum number is 5%.
Musk’s attorney Mike Ringler has filed a grievance with the Securities and Exchange Commission (SEC), writing:
“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.”
The grievance continued:
“To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model—its active user base. In any event, Mr. Musk is not required to explain his rationale for requesting the data, nor submit to the new conditions the company has attempted to impose on his contractual right to the requested data.”
Ringler concluded:
“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.”
Seeking to put additional pressure on Twitter’s Board, Ringler expressed Musk’s dismay that Twitter would not immediately produce the requested information unless it was not being truthful in its business dealings.
Ringler said: “If Twitter is confident in its publicized spam estimates, Mr. Musk does not understand the company’s reluctance to allow Mr. Musk to independently evaluate those estimates.”
Ringler continued: “As noted in our previous correspondence, Mr. Musk will of course comply with the restrictions provided under Section 6.4, including by ensuring that anyone reviewing the data is bound by a non-disclosure agreement, and Mr. Musk will not retain or otherwise use any competitively sensitive information if the transaction is not consummated.”
Ringler also warned: “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 (and the company’s corresponding obligations) under the merger agreement.”
Ringler added: “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.”
Using the Twitter platform, Musk wrote in May: “My offer was based on Twitter’s SEC filings being accurate. Yesterday, Twitter’s CEO publicly refused to show proof of <5%. This deal cannot move forward until he does.”
Elon Musk may be looking for a better Twitter deal as $44 billion seems too high with 20% of users being fake or spam accounts.https://t.co/rZ9Jsn60Mh pic.twitter.com/dQDVva3klZ
— TESLARATI (@Teslarati) May 17, 2022
