Elon Musk has reportedly thrown up his hands and said, “no more.”
After months of jousting with Twitter over data on fake and spam accounts. Musk’s attorneys dropped the bombshell on Twitter on Friday afternoon.
Musk is walking away from the deal.
The sticking point for Musk right from the outset was the number of fake accounts on Twitter.
If you want to monetize the site honestly, you need an honest count of real accounts.
Twitter refused to supply that data, so Musk is walking away.
The letter sent to Twitter by his attorneys stated, “For nearly two months, Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform.’
“This information is fundamental to Twitter’s business and financial performance and is necessary to consummate the transactions contemplated by the Merger Agreement because it is needed to ensure Twitter’s satisfaction of the conditions to closing, to facilitate Mr. Musk’s financing and financial planning for the transaction, and to engage in transition planning for the business.
“Twitter has failed or refused to provide this information.
“Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
Twitter responded, believing it can hold Musk to the original deal…
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
— Bret Taylor (@btaylor) July 8, 2022
I think that Twitter will get hit regardless of how this legal battle with Musk plays out.
If Twitter is loaded with bogus accounts and charging advertisers for reach, that has to be fraud, right?
I know if I advertised on Twitter, I would be livid right now thinking that any of the reach I was being billed for was to ghost accounts, let alone more than five percent.
This is far from the end of this saga for Twitter.
Source: Fox Business