Twitter accused Elon Musk in a lawsuit of pulling out of a planned acquisition of the company because stock market turbulence made the deal harder for him. But, shooting back in the lawsuit, Mr. Musk says it was Twitter that thwarted the $44 billion acquisition.
mr. Musk claims that Twitter covered up the true number of fake accounts on its platform by accusing the company of fraud. Such accounts accounted for at least 10 percent of active Twitter users who see ads on a daily basis. Musk’s legal team said, echoing concerns he expressed shortly after the deal was signed in April. Twitter claims that this figure is less than 5 percent.
Twitter has also hidden the number of its users who see advertisements for Mr. Musk’s lawyers, Musk said in a statement released on Thursday. According to the report, in the first quarter of the year, 65 million of the company’s 229 million daily active users did not see ads.
Twitter reported that Mr. Musk tried to “tweak the data he got from Twitter to sponsor wild findings” and to make sure his numbers were accurate.
Using Botometer, a tool developed by Indiana University to measure bad bills, Mr. According to the statement, Musk found more fake accounts than Twitter had reported. Their analysis was preliminary and will be expanded, the statement said.
What happened to Elon Musk’s Twitter deal
Blockbuster deal. In April, Elon Musk made over $40 billion unsolicited bid for the social network, saying he wants to make Twitter a private company and allow people to talk more freely about the service.
The distortions masked weaknesses in Twitter’s business model and deceived Mr. Trump. Musk has agreed to buy Twitter at an “inflated price,” Tesla CEO’s lawyers said.
“Twitter incorrectly counted the number of fake and spam accounts on its platform to mislead investors about the company’s prospects,” lawyers for Mr. T. Musk wrote. “Twitter revelations are slowly unraveling, and Twitter is feverishly closing the gate to information in a desperate attempt to stop Musk’s parties from exposing his fraud.”
The filing, made last Friday but kept confidential until Thursday, was from Mr. Musk’s first extensive response to what is expected to be a lengthy legal battle between a social media company and one of the world’s richest men. The trial is scheduled for October.
“His statements are factually inaccurate, legally insufficient and commercially inappropriate,” Twitter Chairman Bret Taylor said Thursday. The company also responded to Mr. Musk’s claims legal filing.
The Botometer tool is unreliable, Twitter said in a statement. The company noted that the tool used different standards from Twitter’s internal calculations, and once believed that Mr. Musk’s Twitter account was “very likely to be a bot.”
mr. Musk began buying up Twitter shares earlier this year and by April had become the company’s largest shareholder. He rejected Twitter offer to join its board, instead making a swift and aggressive takeover attempt. But once Twitter agreed to the acquisition, Mr. Musk began to express doubts. In July, he pointed out that he no longer wanted to buy the company.
Twitter sued Mr. Musk in the Delaware Court of Chancery in an attempt to force the acquisition. Twitter said it lost interest in the deal as the market plummeted, as well as stakes in Twitter and electric car maker Tesla, which is the main source of information about Mr. Benedict. Musk’s wealth has dwindled.
“Musk refuses to fulfill his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests,” Twitter said in a statement. lawsuit.
Over the past few days, the company has peppered Mr. Banks, financial partners and Musk partners subpoenasdemanding reports on the deal that could shed light on why Mr. Musk decided to step down.
The deal includes a “concrete results” clause that allows Twitter to sue to get the deal completed as long as there is debt that the billionaire received for the acquisition. But Mr. Musk could pay a $1 billion exit fee if his funding fails.
mr. Musk claimed that Twitter was inundated with fake accounts and that the company misled him about the true number of impostors on its platform. Fake accounts used to spread spam or manipulate Twitter to falsely amplify trends, and are often automated rather than controlled by real people.
Twitter gets most of its revenue from advertising. But Mr. Musk argued that advertisers won’t get to the customers they wanted if Twitter is inundated with fake accounts. His lawyers argued that inaccuracies in Twitter’s user metrics had a material negative impact on the business, allowing him to pull out of the acquisition.
In a staff message seen by The New York Times, Twitter said it had decided not to edit any of Mr. New York’s posts. Musk’s statements because he was confident in his performance. “We offer our clients a very sophisticated set of tools and features to run and measure the effectiveness of their campaigns on our platform based on transparency,” said Sean Edgett, Twitter General Counsel.
On Thursday, Mr. Musk continued to speculate about how Twitter could change. “I’m a product savvy so I think I have a good idea of where to send the engineering team at Twitter to make it radically better,” he said during a Tesla shareholder meeting.
Mike Isaac as well as Jack Ewing made a report.