While a twitter spokesperson has stated that the company is actively cooperating with Mr. Musk, the richest billionaire doesn’t seem to be content with the ongoing deal. The company exec said that Twitter intends to close the deal at the agreed price and term. Musk, however, seems adamant on the bot estimate. According to SEC filings, Elon Musk’s lawyer Mike Ringler has submitted a letter on behalf of the billionaire to Twitter’s Chief Legal Officer Vijaya Gadde that reads more like a scare tactic. According to the letter Mr Musk is entitled to the requested (BOT estimate) data, else he reserves all rights to terminate the merger agreement!
— The Wall Street Journal (@WSJ) June 7, 2022
The letter further states that if the company is confident about the spam estimates then they should allow the Tesla boss to independently assess the same. Something Musk has already asked CEO Parag Agrawal a month back. Musk had put the deal on hold until an independent estimate of the actual number of bots in the platform was done.
“If Twitter is confident in its publicized spam estimates, Mr. Musk does not understand the company’s reluctance to allow Mr. Musk to independently evaluate those estimates” 🎯https://t.co/YJagCr7VxG
— Andrea Stroppa (@Andst7) June 6, 2022
Musk replied Correct’ to a tweet stating a clause SEC10 b-5 that waiving due diligence doesn’t means accepting fraudulent disclosure ie. Bot counts! Ofcourse! But did Mr Musk do his due diligence before jumping into the deal?
Twitter’s shares have plummeted to $39.56. The all cash deal to buyout twitter is $54.20 per share. This must be a nagging pebble in Musk’s shoe.
Meanwhile Texas Attorney General Ken Paxton has launched an investigation on Twitter alleging falsifying bot estimate reports in violation of Texas Deceptive Trade Practices.
Today I’m investigating Twitter for potentially misleading Texans on the number of its “bot” users. I have a duty to protect Texans if Twitter is misrepresenting how many accounts are fake to drive up their revenue.https://t.co/OZbwdV3pnY
— Texas Attorney General (@TXAG) June 6, 2022
Now twitter can either counter sue or as agreed upon earlier Musk will have to pay $1 billion in breakup fees if he decides to walk away. At this juncture, there’s no going back though.
Read the entire transcript of Elon Musk’s legal letter to twitter here.
Cover Image: sourced