The Twitter acquisition of Elon Musk keeps hitting new obstacles. The deal is currently in limbo as Musk and his team estimate how many spam and fake accounts there are, which is a critical factor in determining the company’s true value. They need access to company data to do this, but Twitter refuses to give it.
The Twitter acquisition of Elon Musk keeps hitting new obstacles. The deal is currently in limbo as Musk and his team estimate how many spam and fake accounts there are, which is a critical factor in determining the company’s true value. They need access to company data to do this, but Twitter refuses to give it.
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This is a material breach of Twitter’s merger agreement obligations. Mr. Musk reserves all rights, including the right to not consummate the transaction and the right to terminate the merger arrangement.
Twitter claimed that only 5% accounts were fake. This was the original problem. Musk countered by claiming that the real number is much higher.
Musk made it clear that he doesn’t believe the company’s (Twitter), lax testing methods are sufficient so he must do his own analysis. He has asked for the data.
