The Twitter deal continues to encounter new obstacles.
The deal is currently pending because Musk and his team estimate the actual number of fake accounts and spam on the social network, a key factor to determine the actual value of the business.
But to do so, they need access to the company’s data, which Twitter refuses to give.
Therefore, Musk now threatens to put an end to the deal.
His lawyer Mike Ringler wrote a letter to the United States Securities and Exchange Commission (SEC) that states: ”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”.
The problem stems from Twitter’s assertion that only 5% of social media accounts are false.
Musk’s response to that claim was that the actual amount is much greater than that.
Musk made it clear that he does not believe that the company’s lax test methodologies (Twitter) are adequate and therefore needs to conduct his analysis.
The data he requested are necessary to this effect.