Elon Musk is yet to respond to reports that Twitter will allow him access to its ‘firehose’ of raw data to allay his fears of fake accounts. Meanwhile, Twitter’s top lawyer has reassured staff that the deal is moving forward
Bots on Twitter have become Elon Musk’s biggest issue in going forward with the acquisition.
Twitter on Thursday announced it plans to offer Elon Musk access to its “firehose” of raw data on hundreds of millions of daily tweets in an effort to push forward the Tesla billionaire’s agreed-to $44 billion acquisition of the social media platform, according to multiple news reports.
The Washington Post first reported Twitter’s plan to provide Musk with full access to the firehose, citing a person familiar with the matter. Other reports suggested the billionaire might only receive partial access.
Musk made no comment on Twitter, although he has previously been vocal about various aspects of the deal. Twitter declined to confirm the reports and pointed to a Monday statement in which the company said it is continuing to “cooperatively” share information with Musk.
“Twitter has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement. We believe this agreement is in the best interest of all shareholders,” the company said on Monday.
“We intend to close the transaction and enforce the merger agreement at the agreed price and terms.”
Mike Ringler, the Palo Alto, California, attorney who signed that Monday letter, told the AP he was not at liberty to speak about the matter when reached Wednesday afternoon.
Here’s what you need to know where the deal with Twitter stands:
Deal moving forward, says top Twitter lawyer
As of now, the deal is moving forward.
At least that’s what Twitter’s top lawyer reassured staff on Wednesday, according to Bloomberg.
Persons in the know told Bloomberg a shareholder vote will occur in late July or early August.
The company is just waiting for the Securities and Exchange Commission to approve its proxy, after which it will be sent to shareholders, Vijaya Gadde, Twitter’s head of legal and policy, said at an employee meeting, as per the report.
‘Material breach’, says Musk
This came after Musk in an SEC filing Monday morning said Twitter has not coughed up adequate data on the company’s users, committing a “clear material breach” of the company’s obligations as part of its merger agreement.
“Based on Twitter’s behaviour to date, and the company’s latest correspondence in particular, Mr. Musk believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement,” the letter reads.
“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.”
Musk, who struck a legally binding agreement to buy Twitter in April, contends that the deal can’t proceed unless the company provides more information about the prevalence of fake accounts on its platform. He has argued, without presenting evidence, that Twitter has significantly underestimated the number of these “spam bots” — automated accounts that typically promote scams and misinformation — on its service.
Texas A-G announces investigation into Twitter
On Monday, Texas Attorney General Ken Paxton also announced an investigation into Twitter for allegedly failing to disclose the extent of its spam bot and fake accounts, saying his office would look into “potential false reporting” of bots on Twitter.
Paxton’s unusual move struck observers as singular and possibly inappropriate, though he likely has the legal authority to pursue it. In launching his investigation, Paxton suggested that Twitter might have violated Texas’ Deceptive Trade Practices Act.
Conservative Republicans, who accuse social media like Twitter of anti-conservative bias and censoring views of those opposed to abortion and others, have embraced Musk’s bid for Twitter because of his advocacy of free speech in place of the platform’s content moderation. Paxton’s fellow Texan US Senator Ted Cruz has called Musk’s move “the biggest development for free speech in decades.”
Fake social media accounts have been problematic for years. Advertisers rely on the number of users provided by social media platforms to determine where they will spend money. Spam bots are also used to amplify messages and spread disinformation.
The problem of fake accounts is well-known to Twitter and its investors. The company has disclosed its bot estimates to the US Securities and Exchange Commission for years, while also cautioning that its estimate might be too low.
Twitter-Musk drama
Twitter CEO Parag Agrawal has said that Twitter has consistently estimated that fewer than 5 per cent of its accounts are spam. But Musk has disputed that figure, contending in a May tweet — without evidence — that 20 per cent or more of Twitter’s accounts are bogus.
The unexpected turn in the months-long drama of Musk and Twitter sent that company’s shares tumbling down, likely angering shareholders who had filed suit against Musk last month, accusing him of deflating the stock price. Twitter’s shares have tumbled more than 20 per cent in the last month.
With inputs from agencies
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