Elon Musk threatens to withdraw from a $ 44 billion Twitter deal after the company refuses to provide him with information about fake accounts.
So Twitter now plans to give Musk access to much of his data, potentially until the last tweet.
The social media company has agreed to give Mr Musk direct access to his firehose, a stream of billions of tweets that flow daily into the company’s network, according to a decision expert. It is unknown at this time what he will do after leaving the post.
The information would give Mr. Musk the tools to find out how many accounts could be fake on the Twitter platform. But that probably won’t help him to conclude on Twitter that 5 percent of his active accounts are fake, as the company uses a different methodology that includes ownership data and human analysis to get to that figure. Mr Musk said he did not believe only 5 per cent of his active Twitter accounts were fake.
Twitter’s move could make it harder for Mr Musk to end the deal. On Monday, his lawyers sent a letter to the company accusing him of thwarting an attempt to obtain information necessary to close the deal. Over the weeks, Mr. Musk has also been posting growing comments on Twitter about fake Twitter accounts that seem to have laid the groundwork for renegotiating or pulling out of the deal.
Mr Musk agreed to buy Twitter for $ 54.20 in April. If the deal breaks down, the breakup fee is $ 1 billion. But the deal contains a “specific performance clause” that gives Twitter the right to sue it and force it to close or pay the deal as long as its debt financing remains intact.
A Twitter spokesman declined to comment for giving Mr. Musk access to the tweet stream, but referred to a previous announcement.
“Twitter has and will continue to share information with Mr. Musk to complete the transaction under the terms of the merger agreement,” Twitter wrote. “We believe that this agreement is in the interests of all shareholders. “We are going to close the transaction and enforce the merger agreement at the agreed price and terms.”
Mr. Musk did not immediately respond to a request for comment. The Washington Post previously reported that Mr. Musk had gained access to the Twitter firehose.
The Company often shares confidential data with its acquirer as part of the transaction, and data sharing options are negotiated before any transaction is signed. But Mr. Musk refused to show proper diligence when he agreed to buy the social media company, and Twitter began sharing confidential information with him last month.
How Elon Musk’s Twitter deal developed
Blockbuster deal. Elon Musk, the world’s richest man, has completed what appeared to be an incredible attempt by a famous Mercury billionaire to buy Twitter for about $ 44 billion. Here’s how the deal went:
One of the concerns about sharing Twitter was Mr. Musk’s previous statements, both publicly and to the company, that he was considering creating a competing social media service, according to The New York Times. Typically, such issues are addressed by who will have access to such information.
Mr Musk said he would ensure that everyone who reviews the confidential data provided by Twitter will be bound by the non-disclosure agreement. He also said he would not retain or share sensitive information on Twitter if the deal collapses.
Twitter has calculated that 5 percent of its “monetizable daily active users” are fake. In April, the company said it had 229 million monetized daily active users.
As soon as Mr. Musk gains access to Twitter’s tweet stream, he will likely need a team of experts to analyze the data, as well as computing capabilities to process and store huge amounts of information, say company insiders.