While accusing Twitter of not complying with his request for data, regarding the number of fake accounts existing on the site, Elon Musk is threatening to end his $44 billion buyout offer.
In statements made by his legal counsel, Mike Ringler to Twitters Chief Legal Officer Vijaya Gadde, Ringler stated-
“Mr. Musk is not required to explain his rationale for requesting the data, nor submit to the new conditions the company has attempted to impose on his contractual right to the requested data,” adding “At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement,”-Mike Ringler, Elon Musk’s lawyer
Musk’s lawyer has based these accusations on Twitter’s non-compliant behavior and emphasized that Musk-
“believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement.” Adding that “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,”-Mike Ringler, Elon Musk’s lawyer
Just last month, Musk, successfully negotiated a $44 billion bid to buy the company with plans to take it private. He has said his deal with Twitter “cannot move forward” however, until the company clarifies the number of bot accounts on the platform, adding that his offer was based on “Twitter’s SEC filings being accurate,”
Musk apparently believes that Twitters platform could have as many as 20 percent bots “or higher.” That would be an enormous amount of fake accounts. Musk is obviously endeavoring to check out the platforms’ honesty in this proposed business arrangement.
This move, of threatening to end his deal with Twitter comes just after his stated plans to cut his Tesla work force by ten percent while instituting a hiring freeze. These stated plans are related to the fact that Musk was quoted as saying he had a “super bad feeling” about the U.S. economy.
It remains to be seen whether Musk can force compliance out of Twitter, who wants his money but not his control. The idea of Twitter being privatized has company management and platform users alike – roiling with both fear and contempt.
Like a child forced to come across with the truth – Twitter seems to be in heavy pout mode, stamping their feet in an effort not to come clean. This progressively run platform, is a prime example of Social Media run amuck. For Musk however – this is not his first rodeo. Stay tuned America, this looks like it’s going to be a wild ride.