Elon Musk said on Saturday its proposed $44 billion takeover of Twitter move forward if the company can confirm some details about how it measures whether user accounts are ‘spam bots’ or real people.
The billionaire and Tesla CEO He wants to go back of its April agreement to buy the social media company, which gave Twitter to sued him last month to complete the acquisition. Anticausal muskaccusing Twitter of misleading its staff about the true size of its user base and other problems it said amounted to fraud and breach of contract.
There are both sides towards a trial in October in Delaware court.
“If Twitter provides its means of sampling 100 accounts and how to verify they are real, the deal should continue on original terms,” Musk tweeted early Saturday. “However, if their SEC filings turn out to be materially false, they should not be.”
Twitter declined to comment on Saturday. The company has repeatedly disclosed to the Securities and Exchange Commission an estimate that less than 5% of user accounts are fake or spam, with denials that it could be higher. Musk waived his right to further due diligence when he signed the April merger agreement.
Twitter has argued in court that Musk is deliberately trying to tank the deal because market conditions have deteriorated and the acquisition no longer serves its interests. In a court filing Thursday, he describes his counterclaims as an imaginary story “contradicted by evidence and common sense.”
“Musk invents representations that Twitter never made and then uses the extensive confidential data provided by Twitter to violate those purported representations,” the company’s attorneys wrote.