Elon musk might cancel his Twitter deal if…
Elon Musk stated on Monday that if Twitter Inc fails to give data on spam and false accounts, he may withdraw his $44 billion bid to buy the company. In a letter to Twitter, the billionaire restated his demand for data on bot profiles and stated that he reserves all rights to dissolve the deal because the firm failed to provide him with the data in a “clear significant breach” of its commitments.
Twitter shares were priced at a substantial deficit to Musk’s proposal of $54.20 per share, indicating that traders did not anticipate the transaction to conclude at the contract rate. Seeking comment from Twitter was not instantly returned. This is the first time Musk has warned to back out of the transaction on paper rather than Twitter. As per the letter, “Musk feels Twitter is openly refusing to comply with its duties under the merger agreement, raising further suspicions that the firm is hiding the needed data.”
Parag Agarwal’s reply
Twitter has previously dismissed Musk’s warning that the acquisition was “on pause,” claiming that the data would aid him in preparing for his ownership of Twitter and that it was not intended to conduct due diligence or resume discussions. Musk stated in May that he would put the transaction “temporarily on hold” while waiting for Facebook to submit data on the percentage of bogus accounts it had.
In reply, Twitter CEO Parag Agrawal stated that the most sophisticated spam campaigns employed a blend of humans and bots and that he did not believe the computations could be done outside of Twitter because it demanded both public and private data that Twitter does not provide.
Musk, a self-described free-speech illiberal who holds 9.6% of Twitter and is the company’s second-largest shareholder, has stated that one of his top priorities will be eliminating “spam bots” from the platform. Tesla Inc CEO Elon Musk has also secured finance for the transaction and attracted notable investors such as Saudi Arabian investor Prince Alwaleed bin Talal and Sequoia Capital.