Image Source: Esquire
One of the reasons Elon Musk gave for trying to back out of his $44 billion offer to buy the social media business was because Twitter could not give him precise information on the proportion of accounts on the platform that were spam and bots.
Since Musk was issued a spam report when he made his initial effort to acquire the company back in April, Twitter will now be required to provide paperwork from Kayvon Beykpour, the former general manager of consumer products at the business.
Earlier this month, after a string of Tweets from the business magnate suggested that, under the right circumstances, the acquisition may still go through, Musk changed his tune once more about his decision to withdraw from his attempt to buy Twitter.
Musk said that the “transaction should go” as long as Twitter could give him the information he’s been looking for in response to a Tweet that noted that Twitter purportedly utilized a “false data set” when estimating how many accounts on the platform are spam and bot accounts.
Twitter CEO Parag Agrawal was then challenged to a “public debate” regarding the “bot proportion” by Tesla CEO Elon Musk.
Musk boldly stated, “Let him prove to the public that Twitter has 5% phony or spam everyday users.”
How Musk pulled out of the Twitter deal
According to an SEC filing, accusations against Twitter and the company’s apparent failure to appropriately disclose what proportion of users were bots and spam accounts contributed to Musk’s withdrawal of his bid. In addition, according to his legal advice, Twitter’s initial agreement with the corporation was “breached” by the firm’s failure to achieve this.
Twitter Board Chairman Brett Taylor stated that the firm intended to sue Elon Musk to compel him to complete the transaction.
New court documents made public at the beginning of August revealed that Twitter had subpoenaed documents from Morgan Stanley and other banks and those of Musk’s advisors to use in its trial against the billionaire. This heated up the legal dispute between Elon Musk and Twitter.
Twitter has requested information from a number of financial institutions in the hopes that it may provide light on Musk’s interactions with the banks and how his buyout proposal was supposed to be financed. These institutions include Bank of America, Barclays, BNP Paribas, and Citigroup.
The subpoenas also ask for information on any discussions that may have taken place regarding how the Twitter acquisition may impact Tesla, the CEO of which is Elon Musk.
The Musk v. Twitter trial was awarded an expedited date of October 2022 by a judge who ruled in favor of Twitter on July 19.
Musk had pushed for a trial in February 2023, requesting extra time to address his unaddressed spam and bot accounts concerns. However, he said that the additional seven months were required to conduct thorough research.
Delaying the trial, according to Chancery Court of Delaware Chancellor Kathaleen McCormick, “threatens irreparable harm to [Twitter].”
Right now, the trial will last five days.
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Musk’s initial proposal also had a provision that stated there would be a $1 billion cost if he decided to end the contract before it was fully implemented.
However, considering the amount of money at stake, Musk doesn’t appear overly concerned, tweeting jokes and memes and treating the matter lightly.