The ongoing saga between Tesla CEO Elon Musk and Twitter continues.
In a tweet published last weekend, Musk states that the Twitter acquisition should proceed if the company can provide substantive proof that its userbase is real. “If it turns out that their SEC filings are materially false, then it should not,” Musk says.
Musk’s $44 billion USD (about $60 billion CAD) deal hinges on whether Twitter can provide the data and information necessary to provide an accurate look at how many fake and spam accounts are on the platform. This has been a prevalent contingency following the news of the acquisition in April. Musk is to take ownership of the company for $54.20 USD (roughly $69.60 CAD) per share in cash.
In July, Musk’s legal team wrote a letter to the U.S. Securities and Exchange Commission (SEC). In it, it says that Musk wishes to “make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.” Musk attempts to gain proof that fake and spam accounts represent less than five percent. This ask from the Tesla CEO has not been fulfilled.
However, the Twitter Board commits to closing the deal and is pursuing legal action to ensure the acquisition closes.“We intend to close the transaction and enforce the merger agreement at the agreed price and terms,” Twitter said in an earlier statement.
“According to Musk, he — the billionaire founder of multiple companies, advised by Wall Street bankers and lawyers — was hoodwinked by Twitter into signing a $44 billion merger agreement. That story is as implausible and contrary to fact as it sounds,” Twitter now states.
Twitter also attributes Musk as a factor in its lowered revenue during its Q2 2022 earnings reports alongside issues within the ad industry.
Musk believes that spam accounts make up roughly 20 percent of its total user base. It does appear as though Musk is looking to terminate the acquisition. However, Musk continues to claim the deal should close. Musk did file a countersuit in July against Twitter. A trial between the two is set for October 17th, 2022.
Musk is a prominent user on Twitter and has over 100 million followers. He is a self-proclaimed advocate for free speech and says he hopes to instill that onto the social media platform.
Source: Reuters