In a letter to regulators and Twitter’s board of directors, Elon Musk has stated that he was entitled to measure how serious the Twitter spam bot situation is as part of his due diligence and that the social media platform is thwarting his requests for more information about your user base.
Parag Agrawal and Twitter’s Elon Musk have been going back and forth during the spam issue and the number of bots on the platform has in its daily user base. Discussing the issue, Musk had previously stated that the acquisition deal is on hold, pending further investigation. However, Musk’s letter formalizes the dispute that has been going on for weeks and, for the first time, Musk has gone on record that he is willing to leave the deal, if Twitter interferes with your due diligence. Elon Musk’s attorney, Mike Ringler, wrote in the letter: “As the potential owner of Twitter, Musk clearly has a right to the requested data in order to prepare for the transition of the Twitter business to his ownership and to facilitate the financing of his transaction. . To do both, he must have a complete and accurate understanding of the core of Twitter’s business model: its active user base.” Twitter has always maintained that, of its daily active users, around 5 percent of accounts are operated by bots. Although that number in itself is quite significant, Elon Musk and several notable crypto enthusiasts believe the number of spambots to be 4-5 times higher than what Twitter claims. Analysts have said the Tesla boss could be using the problem to try to renegotiate the price or even walk away. They said Musk’s decision to raise the issue on social media was unconventional, making it difficult to establish how serious he was. When Twitter CEO Parag Agrawal defended the company’s process in a series of tweets, Musk responded with a poop emoji. Musk’s plans for the company have come under intense scrutiny from regulators around the world, while raising some alarm among investors in electric car company Tesla and rocket company SpaceX, which Musk also directs. He has lined up outside investors to help pay for the acquisition and is also using shares and loans backed by his Tesla shares, which have taken a hit in recent weeks as market turmoil wipes billions from the securities of companies like Tesla. The drop has also made Musk’s offer of $54.20 per Twitter share seem even more generous. On Monday, shares of Twitter were trading below $39, down 3%, though they later regained some ground. They have yet to get back to the highs they reached last month shortly after Musk revealed that he had bought around 9% of the firm’s shares.. Several trade analysts and investment experts have stated that this may be a clever trick by Musk to get Twitter much cheaper than its initial offer of $54.20 per share. And given how poorly tech stocks are doing, particularly Twitter. Via: FirstPost
