Twitter: Elon Musk threatens to withdraw his offer due to lack of information

A new twist in the saga of the Twitter takeover by Elon Musk: in an official document, the entrepreneur threatens to withdraw his offer because the social network “actively resists” his requests for information. The platform refutes.

The multi-billionaire believes that Twitter is breaching its obligations by not providing it with all the data it has requested on the subject, according to a letter addressed to the legal head of the social network and published on the website of the American Authority was released the Financial Markets (DRY). ‘M Musk reserves all rights arising therefrom, including his right not to complete the transaction.

The platform responded by stating in a message to AFP that it is sharing information with Mr Musk under the agreement reached and that it has every intention of completing the transaction at the agreed price.

The head of Tesla and SpaceX, who in April made a bid to buy the social network for $44 billion, has repeatedly questioned the data on spam and fake accounts provided by Twitter and the measures taken to limit their spread. And he has already threatened on his Twitter account to put the agreement “on hold”. However, this is the first time he has done so in an official document.

lower the price

The entrepreneur is looking for leverage “to lower the price of the offer or, if necessary, to withdraw entirely,” suggests Angelo Zino from CFRA. Mr Musk, he recalls, waived his right to look deeper into the group’s accounts before the deal was announced.

It is becoming increasingly difficult “to imagine a scenario in which this is not resolved in court,” the analyst notes. Both parties have agreed to pay up to $1 billion in severance, subject to certain circumstances.

On the New York Stock Exchange, Twitter shares fell 1.5% on Monday to close at $39.56, a far cry from the $54.20 Mr. Musk had offered in April. The modest magnitude of the drop “reflects investors’ already deep skepticism about the completion of the operation,” said Susannah Streeter, an analyst at Hargreaves Lansdown.

argument about the methodology

Twitter estimates that the number of fake accounts and spam on the social network accounts for less than 5% of its daily active users. However, Mr Musk says the methodology used by the platform is not “reasonable” and that he needs to do his “own analysis”. He “repeatedly” asked the social network for more information, the letter said.

Twitter sent a document on June 1, but only to offer additional details on its methodology, it adds. However, the entrepreneur believes that he needs more information to prepare the transition and complete the financing of operations: the proportion of fake accounts on the network depends on the possibility of generating revenue from them through advertising or paid subscriptions.

Investigation in Texas

In the direction of Mr. Musk, the Texas Attorney General announced in a press release on Monday that he had launched an investigation to determine whether fake Twitter accounts accounted for 5% of subscribers, as claimed by the social network, or up to ‘at 20% or more, as the entrepreneur put it. This would then amount to “scamming” consumers and businesses in Texas.

Ken Paxton’s services have asked Twitter to send documents explaining how the platform calculates and maintains data about its users by June 27.

After previous criticism of Mr. Musk, the head of the social network Parag Agrawal split off a long statement on measures to combat spam and fake accounts in mid-May.

Mr Agrawal specifically pointed out that Twitter’s numbers “are based on multiple reproductions of human analysis of accounts chosen at random”.

The quirky entrepreneur had responded to these statements with an emoji in the shape of a poop. “How do advertisers know what they’re really paying for?” he also tweeted. “This is a fundamental question for Twitter’s financial health.”

/ATS


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