In yet another tweet aimed at the micro-blogging site, Elon Musk has clearly stated that the deal can’t move forward unless Twitter can prove that spam accounts account for less than 5% of the total members.
This time though, Musk went a step forward and publicly accused CEO Parag Agrawal of refusing to show proof of spam accounts being less than 5%. Speaking at a tech conference in Miami on Monday, he further added that fake account numbers are about 20% citing a report from Teslarati.
This new tweet has added more pressure on Twitter’s management to close the deal and perhaps cave into accepting a lower offer, even if it’s just to stop Musk from trolling them on their own platform.
The negative publicity is driving the company’s stock down. At the time of writing, the Twitter stock is down 8.18% at $37.39 since trading started on Tuesday. For context, it was around $50 when Musk’s offer was initially accepted.
The other option Musk might be looking for is to get out of his deal, something he might have to pay a $1 billion breakup fee for at the moment.
Musk gave up his right to do due diligence when he extended his initial offer, most likely to get the company to accept what was his “best and final” offer considering the board first tried to foil the takeover attempt.
In addition to that, he also agreed to a non-disparagement clause as part of his deal to buy Twitter, so this entire farce could cost him legally as well.
The company has already filed a preliminary proxy statement which is good proof that it’s still committed to the acquisition. Bloomberg also reported that the company reported that it remains “committed to completing the transaction on the agreed price and terms as promptly as practicable”.
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