A letter from Tesla CEO Elon Musk outlining his concerns about a Twitter transaction might spell the end of Elon Musk’s Twitter takeover plan. Musk brought up Twitter’s treatment of phony accounts once again in an SEC filing, this time expressing his displeasure with the company’s approach.
Regarding data on user accounts, Musk believed that Twitter was openly refusing to comply with its commitments under the merger agreement. That information was not available, he said since Twitter declined to provide it to him. In a letter to him, his legal team explains:
Tweeting new information about the testing methods used by Twitter is equal to denying Mr. Musk’s data demands, regardless of how they are presented. In an effort to obscure and confound the problem, Twitter has attempted to portray itself in a different way.
Last month, Musk raised the problem of spam accounts on Twitter and his concerns about their composition. Tesla’s CEO put a stop to the Twitter acquisition on May 13 because of information supporting the account composition calculation. As a result, the purchase was essentially put on hold until the issue of spam and false accounts was resolved.
Added to that, Twitter was obligated under its Elon Musk Twitter partnership to give data, according to a new letter from the company.
Mr. Musk has a legitimate claim to the sought information since he is a potential buyer of the social media platform’s assets. This is so that he may begin the process of taking over Twitter’s company. For the sake of making his deal more financially feasible. Twitter’s active user base is at the heart of the company’s economic model, and he has to know it through and out if he is to succeed in both roles.
Twitter’s reluctance to provide information to Musk’s staff has fueled more skepticism, according to the company. Concerns about what Tesla CEO Elon Musk may discover prompted the business to withhold the required information.
As Musk argues in his letter, Twitter is attempting to obstruct his access to information protected by the merger agreement. A clear and serious violation of Twitter’s responsibilities under the merger agreement has occurred in this instance.