Elon Musk Threatens To Walk Away From Twitter Deal Due To "Further Suspicion" About Spam And Bot Accounts

By Gina Florio··  3 min read
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Elon Musk

The whole internet erupted when Elon Musk offered to buy Twitter. At first it sounded like nothing more than talk, but as time went on it became clearer that this deal was for real.

Musk offered to buy Twitter for $44 billion, and the social media company agreed. But before ownership could be properly handed over, there was a speed bump about the number of spam and bot users on the popular platform.

Elon Musk Threatens To Walk Away from Twitter Deal

On May 13, Musk tweeted an update about the Twitter deal: "Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users," he wrote. "Still committed to acquisition." 

This followed a Twitter report that claimed 5% of the platform's users were "false or spam accounts." The report did admit, however, that the "the actual number of false or spam accounts could be higher than we have estimated." Twitter claimed that they are "continually seeking to improve our ability to estimate the total number of spam accounts."

That wasn't convincing enough for Musk. He decided to hold off on the offer until Twitter could give more information about the actual number of spam and bot accounts. He even suggested that he should pay 25% less if bots make up 25% of users.

Things have taken a turn for the worse recently as Musk accused Twitter of "actively resisting and thwarting" his right to information about the company that he has agreed to purchase. Musk's attorneys wrote a letter to Twitter today.

"This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement," the letter read.

Musk's attorneys argue that Twitter must engage in "reasonable cooperation" and provide the buyer with information and data for "any reasonable business purpose related to the consummation of the transaction."

"At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Mr. Musk’s own analysis of that data will uncover," the letter said. "If Twitter is confident in its publicized spam estimates, Mr. Musk does not understand the company’s reluctance to allow Mr. Musk to independently evaluate those estimates."

A Twitter spokesperson told FOX Business that they "intend to close the transaction and enforce the merger agreement at the agreed price and terms."

Both parties have made it clear that they want to move forward with the purchase and complete the handover, but Musk is staying firm on his request to see the real number of spam and bot accounts on the popular social media platform.

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