Looks like Elon Musk’s acquisition of Twitter has yet another obstacle on its way. The merger agreement is currently on pause with Musk’s team estimating and detecting fake accounts on the app, but not being provided access to the additional data required for this by Twitter.
Inferring to this, Musk decides to break the agreement. His attorney, Mike Ringler, writes in a letter to SEC, “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”.
As opposed to Twitter’s official filings reporting of less than 5% of the existing accounts to be fake, the letter quotes: “Mr. Musk has made it clear that he does not believe the company’s lax testing methodologies are adequate so he must conduct his own analysis. The data he has requested is necessary to do so.”
“At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement.”
Twitter’s reports are based off internal data accessible by solely Twitter. Without this data being available, it is not possible to estimate the number of bot accounts