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Elon Musk threatens to withdraw takeover bid on Twitter


The Elon Musk-Twitter saga has taken another interesting twist. Tesla chief executive Musk accused the social media giant of withholding data and even threatened to withdraw its $44 billion takeover bid.

Musk alleged that Twitter was flouting its obligations to provide required data on fake accounts.

According to a document filed with the securities regulator, Musk said the social media company had committed “a manifest material breach” of “its obligations under the merger agreement” due to which the Tesla CEO reserves the right “not to complete the transaction and its right to terminate the merger agreement”.

Read also | WION explains | The Elon Musk-Twitter saga; from the hostile offer to the actual takeover

Last month, on May 13, the billionaire tweeted that the takeover deal was temporarily on hold.

“The Twitter agreement is temporarily suspended pending details supporting the calculation that spam/fake accounts actually represent less than 5% of users.”

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Watch | Twitter shareholders are suing Tesla CEO Elon Musk for violating corporate laws

In May, Twitter predicted that in the first quarter, fake accounts or spam accounted for less than 5% of its monetizable daily active users.

Read also | Twitter deal temporarily suspended, says Elon Musk

However, in a response to a Twitter user, Musk said the number of fake users should be 20%, but could be significantly higher. He further stated that the deal will not proceed until the CEO of Twitter provides justification for the less than 5% request.

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According to software company SparkToro, 19.42% of Twitter accounts are fake or spam, but the company acknowledges that its process for identifying bots is likely different from Twitter’s and that this could impact figures.

This latest twist in his $44 billion bid to buy the vital rig fueled rumors that the world’s richest man was trying to lower the price or possibly walk away from the deal.

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Post expires at 2:44pm on Thursday June 16th, 2022