February 27, 2024

Elon Musk accuses Twitter of hiding data about spam accounts

Elon Musk accuses Twitter of hiding data about spam accounts

Elon Musk appealed to Twitter management demanding more data about fake accounts onplatform. This is stated in a letter published on the website of the US Securities and Exchange Commission.

“In fact, Twitter refused to hand overinformation that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate the assessment of spam and fake accounts on the platform. Twitter's latest offer to simply provide more information about the company's own testing methodologies […] is tantamount to denying the data request," lawyer Mike Ringler said.

According to the letter, the agreement providesthe transfer by the company of the requested data for "any reasonable business purposes related to the completion of the transaction." According to Musk, Twitter is "clearly reneging" on the commitment due to concerns about the results of an independent evaluation of the data.

“[…] Mr. Musk reserves […] the right not to complete the transaction and the right to terminate the merger agreement,” the letter says.

At the opening of trading on June 6, Twitter shares fell 3.34%. The current price is $38.82.

Elon Musk accuses Twitter of hiding data about spam accounts

Elon Musk accuses Twitter of hiding data about spam accounts

Data: Google Finance.

In early April, Musk became Twitter's largest shareholder after acquiring a 9.2% stake for $2.89 billion.

On April 14, he offered to buy the social network for more than $43 billion. The entrepreneur explained this by his intention to create an “inclusive arena for freedom of speech,” and not by a desire to make money.

Twitter management did not initially evaluate the proposal and approved the takeover defense plan. However, he later revised his position.

At the end of the month, the board approved the sale of the company to Musk for $44 billion. One of his goals, the billionaire called the victory over spam bots.

On May 13, the head of Tesla announced the suspension of the deal.on the acquisition of Twitter after the media reported that the platform's audience figures were inflated. He also accused social network algorithms of manipulating users.

Twitter shareholders sued Muskand the social network itself due to the "chaotic process" of the company's takeover. In their opinion, the billionaire violated the laws of the state of California, "sowing doubt" in closing the deal.