Elon Musk threatened to withdraw his offer due to lack of information

New twist on Elon Musk’s Twitter takeover legend: the businessman threatens in an official document to withdraw his offer because the social network is “actively resisting” his requests for information. Denied by the platform.

The multi-billionaire believes that by not giving him all the data he requested on the subject, Twitter is violating his obligations, according to a letter addressed to the social network’s legal manager and has been published on the website of the American authority of financial markets (DRY). ‘M. Musk reserves all resulting rights, including his right not to complete the transaction.

The platform reacted by saying in a message to the AFP that it was sharing information with Mr. Musk in accordance with the agreement reached and that it has every intention to complete the transaction, at the agreed price.

The boss of Tesla and SpaceX, which in April made an offer to buy the social network for $ 44 billion, questioned on several occasions the data Twitter sent to spam and fake accounts and the steps taken to limit its spread. And he has already threatened on his Twitter account to ‘hold’ the deal. But this is the first time he has done so in an official document.

Lower the price

The trader is looking for a way of pressure ‘to lower the offer price or completely withdraw if he decides to do so’, suggests Angelo Zino of the CFRA company. Mr. Musk, he recalls, waived his right to look deeper into the group’s accounts before announcing the deal.

It’s more and more difficult to “think of a scenario where it’s not fixed in court”, the analyst said. Both parties have pledged to pay severance pay of up to $ 1 billion in certain circumstances.

On the New York Stock Exchange, Twitter’s stock fell 1.5% on Monday to close at $ 39.56, far from the $ 54.20 price Mr. Musk in April. The low magnitude of the decline “reflects investors’ deep skepticism about the completion of the operation ”, said Susannah Streeter, analyst at Hargreaves Lansdown.

Clash of methods

Twitter estimates that the number of fake accounts and spam on the social network represents less than 5% of its daily active users. But Mr Musk said the methodology used by the platform was not ‘adequate’ and he should conduct his ‘own review’. He ‘repeatedly’ asked the social network for more information, the letter said.

Twitter sent out a document on June 1, but only to offer more details on its procedure, it added. However, the entrepreneur believes that he needs more information to prepare for the transition and finish financing the operation: the proportion of fake accounts in the network depends on the ability to obtain revenue from them through advertising or paid services. subscription.

Investigation in Texas

Towards the direction of Mr. Musk, the Attorney General of Texas announced Monday in a press release that he has launched an investigation to determine if the fake Twitter accounts represent 5% of subscribers, as claimed by the social network, or rather up to ‘at 20% or more, as the businessman said. This would be the equivalent of ‘fraud’ on Texas consumers and businesses.

Ken Paxton’s services requested Twitter to send documents before June 27 explaining how the platform calculates and manages data to its users.

After earlier criticisms of Mr. Musk, the boss of social network Parag Agrawal split in mid -May a lengthy explanation of the steps taken to combat spam and fake accounts.

Mr. Agrawal notably indicated that the Twitter numbers were ‘based on multiple multiplication of human reviews on accounts, which were randomly selected’.

The strange businessman responded to these explanations with an emoji in the shape of shit. ‘How do advertisers know what they’re really paying for?’, He also tweeted. ‘This is a key question for Twitter’s financial health.’

/ATS

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