Headline Roundup • June 6th, 2022
Musk Threatens to Back Out of Twitter Deal Over Request for Internal Spam Data
Summary from the AllSides News Team
Tesla CEO Elon Musk threatened to back out of his $44 billion deal to buy Twitter over accusations that the company had not provided information about the presence of spam bots on its platform.
In a Monday letter, Musk’s attorneys wrote that Twitter was required to provide information that would allow him to independently review “spam and fake accounts” on the company’s platform. The attorneys added that Musk believed the company was intentionally trying to hide the truth and relying on an inadequate bot estimate. Finally, the attorneys wrote that Musk reserved his right to back out of his deal to purchase the company.
Musk, who waived due diligence when he agreed to buy Twitter, has argued that over 20% of Twitter accounts were fake, four times more than the company’s 5% estimate. Twitter CEO Parag Agrawal responded to Musk’s suspicions in May, writing, “Unfortunately, we don’t believe that this specific estimation can be performed externally, given the critical need to use both public and private information (which we can’t share).”
Coverage was widespread and prominently featured across the spectrum on Monday. Headlines from the right were more likely to frame the story as an accusation of wrongdoing against Twitter, and headlines from the left often framed the story as Musk “threatening” to back out of his deal with the company.
Featured Coverage of this Story
Getty Images | NurPhoto
Elon Musk today threatened to pull out of his $44 billion deal to buy Twitter in a letter that claimed the company violated the merger agreement by refusing to provide the data behind its spam estimates. Musk needs the data to obtain financing and prepare for the ownership transition, according to the letter sent to Twitter Chief Legal Officer Vijaya Gadde.
"Based on Twitter's behavior to date, and the company's latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company's...
AP
Elon Musk on Monday accused Twitter of breaching its contract with him by failing to provide information about spam accounts — and once again threatened to back out of his $44 billion takeover deal.
Attorneys for Musk wrote that Twitter has refused to provide information that would “facilitate his evaluation of spam and fake accounts on the company’s platform,” according to a stern letter to Twitter that was filed with the Securities and Exchange Commission.
Illustration by Kristen Radtke / The Verge; Getty Images
Elon Musk says that Twitter is in “clear material breach” of their $44 billion acquisition deal and that he could “terminate” the agreement in response. In a letter sent to Twitter this morning, Musk’s legal team claims that Twitter has failed to provide him with information on the service’s spam bot problem and that he’s entitled to receive that information under the deal agreement.
“Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement,” the lawyers write. The letter says...
