Elon Musk is threatening to end his $44 billion agreement to buy Twitter, accusing the company of refusing to give him information about its spam bot accounts.
Lawyers for the Tesla and SpaceX CEO made the threat in a letter to Twitter dated Monday. That letter was included in a filing from Twitter with the U.S. Securities and Exchange Commission.
The lawyers say in the letter that Twitter has offered only to provide details about the company’s methods for determining the number of accounts. But they contend that’s “tantamount to refusing Mr. Musk’s data requests.” Musk wants underlying data so he can do his own verification of what he says are Twitter’s lax methodologies.
The Twitter sale agreement allows Musk to get out of the deal if there is a “material adverse effect” caused by the company. It defines that as a change that negatively affects Twitter’s business or financial conditions., which experts said he can't do. If he walks away, he could be on the hook for a $1 billion breakup fee.
Twitter CEO Parag Agrawal has said the company has consistently estimated that fewer than 5% of Twitter accounts are fake. Twitter has disclosed its bot estimates to the U.S. Securities and Exchange Commission for years, while also cautioning that its estimate might be too low.“If Twitter is confident in its publicized spam estimates, Mr. Musk does not understand the company’s reluctance to allow Mr.
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