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Musk threatens to kill Twitter deal over claimed lack of user data transparency

 1 year ago
source link: https://finance.yahoo.com/news/musk-threatens-kill-twitter-deal-132035247.html
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Musk threatens to kill Twitter deal over claimed lack of user data transparency

Alex Wilhelm
Mon, June 6, 2022, 10:20 PM·3 min read
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In a fresh SEC filing this morning, Twitter shared a letter it received from Elon Musk's legal team indicating displeasure with the company's offered information regarding the level of "spam and fake accounts" on its service. This is the same concern that the technology entrepreneur has posted about extensively since his deal to buy the social media platform was settled earlier in the year.

Per the letter -- which you can read in its entirety here -- Musk considers Twitter's "latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written materials or verbal explanations, [as] tantamount to refusing [his] data requests," requests that the SpaceX and Tesla CEO says will help "facilitate his evaluation of spam and fake accounts on the company’s platform."

The letter says that more data (and not just explanation of how the existing data was gathered) on Twitter's non-human users -- both natural and spam -- is important for helping close the transaction from a financing perspective. "As Twitter’s prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter’s business to his ownership and to facilitate his transaction financing," the letter reads.

At the end of the short correspondence, Musk's legal team threatens to kill the deal (emphasis: TechCrunch):

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 corresponding obligations) under the merger agreement. This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement.

Fighting words indeed.


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