Elon Musk Accuses Twitter of 'Actively Resisting' and 'Thwarting' His Attempts to Buy the Company
Now, it remains to be seen if Musk will in fact move forward with the deal.
Elon Musk got one step closer to finalizing his $44 billion Twitter acquisition on Friday, with the official expiration of the regulatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Fox Business reports, but whether or not the billionaire will proceed with the buyout remains increasingly contentious and unclear.
Not only does the purchase's finalization still rely on customary closing conditions, including shareholder and remaining regulatory approvals, but it also requires the answer to a difficult question posed by the billionaire: How many fake and spam accounts exist on Twitter?
Twitter's monetizable active user (mDAU) base clocked in at 229 million in the first quarter of 2022 — a nearly 16% increase year over year. According to the social media giant, spam and fake accounts make up less than 5% of its users, but Musk believes that at least 20% of Twitter's users are spam or fake accounts — and that he should get a better deal if that's the case.
But Twitter CEO Parag Agrawal has made it clear that coming up with an accurate estimate would be complicated, as such calculations require the "critical need to use both public and private information."
According to an amended securities filing on Monday, Musk believes the social media platform is "actively resisting" and "thwarting his information rights" by refusing to disclose that information, Bloomberg reports. Musk says Twitter's lack of disclosure 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."
But ending the deal would mean a staggering $1 billion termination fee for both Musk and Twitter — and the social media giant intends to make the billionaire see the merger through, claiming that it's in the best interest of shareholders.
Twitter was down nearly 23% month over month as of Monday morning.
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