Elon Musk Accuses Twitter of Thwarting His Due Diligence, Threatens to Walk Out of Deal
upstart writes:
In a letter to the regulators and to the board of directors at Twitter, Elon Musk has stated that he was entitled to measure just how bad the spam bot situation is at Twitter as part of his due diligence and that the social media platform is thwarting his requests to learn more about its user base.
Twitter's Parag Agrawal and Elon Musk have been going back and forth over the issue of spam and the number of bots the platform has in its daily user base. Sparring over the issue, Musk had earlier stated that the takeover deal is on hold, pending further investigation.
However Musk's letter formalises the dispute that has been going on for weeks, and for the first time, Musk has gone on record to state that he is willing to walk away from the deal, if Twitter interferes with his due diligence.
Elon Musk's lawyer, Mike Ringler, wrote in the letter, "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. To do both, he must have a complete and accurate understanding of the very core of Twitter's business model - its active user base."
[...] Several trade analysts and investment experts have stated that this may be a clever ruse deployed by Musk, to get Twitter for far cheaper than his initial offer of $54.20 per share. And given how badly tech stocks, particularly that of Twitter, is operating.
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