Twitter will reportedly give in to Elon Musk’s requests for data after Tesla founder threatened to pull out of the $ 61 billion acquisition deal.
Twitter is preparing to give in to Elon Musk’s requests for access to data after the tech tycoon threatened the $ 61 billion takeover.
Mr Musk has entered into talks with Twitter to buy the social media platform for $ 44 billion (AU $ 61.3 billion), but recently the agreement was “temporarily suspended” after asking the social media platform to clarify how many of its users were bots or spam accounts.
Tesla’s founder accused the social media giant of “resisting and hindering” its right to information about fake accounts, something he previously mentioned was key to the huge deal going on.
He said up to half of Twitter’s 229 million users could be fake. Twitter puts that number at around five percent.
The Twitter board now plans to meet Mr. Musk’s requests by offering access to his “all fireproof” comprehensive data that includes over 500 million tweets posted every day. The Washington Post relationships.
A source familiar with the company’s thinking told the publication that the information could be released as soon as this week.
There are a number of companies that already pay for access to the data, which includes real-time recordings of the tweets, the devices from which they were posted, and the account information attached to the tweet.
A letter sent Monday from Musk’s legal team said Twitter is “obligated” to provide information and data for “‘any reasonable consumer-related commercial purpose of the transaction.”
“Musk believes that Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding requested data due to concern over what the analysis of that data is. Musk’s will find out, “the letter from attorney Musk to Twitter’s chief legal officer, Vijaya Gadde, read.
“As a potential Twitter owner, Musk clearly has a right to the required data to enable him to prepare to transfer the Twitter business to his ownership and to facilitate the financing of his transactions. To do both, he must have a complete and accurate understanding of the very core of Twitter’s business model: its active user base.
“In any case, Musk is not required to explain why he requested the data, nor to submit to the new conditions that the company attempted to impose on his contractual right to the requested data.”
The letter added that Mr. Musk reserves the right to “terminate” the agreement.
The withdrawal of the deal could see the billionaire strike with a $ 1 billion breakup fee.
It’s unclear why Musk wants to know how many Twitter users are fake, but he might try to lower the social media platform’s price by showing it has fewer genuine subscribers.
He tweeted on May 17 that the deal “can’t go on” until the real number of spam accounts is revealed.
Twitter CEO Parag Agrawal said in May that Twitter had explained how it works how many of its accounts are fake.
“We shared an overview of the appraisal process with Elon a week ago and look forward to continuing the conversation with him and all of you,” Agrawal said at the time.
Mr. Agrawal, who has been Twitter’s CEO since Jack Dorsey stepped down in November last year, added that spammers “are sophisticated and hard to catch.”
The Twitter CEO said he was confident that only 5% of the accounts were fake and that they had sampled thousands of random accounts.
Mr. Musk specifically posted the poop emoji on Twitter in response.
Originally published as Twitter gives in to Elon Musk’s requests for data after a $ 61 billion threat