Elon Musk said on Saturday that his planned $44 billion acquisition of Twitter should 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 CEO of Tesla has been trying to back down of his April deal to buy the social media company, prompting Twitter to sue him last month to complete the acquisition. musk countersuedaccusing Twitter of misleading his team about the true size of its user base and other issues that he said amounted to fraud and breach of contract.
Both sides are headed for a trial in October. in a Delaware court.
“If Twitter simply provides their method of sampling 100 accounts and how they are confirmed to be real, the deal should continue on original terms,” Musk tweeted early Saturday. “However, if it turns out that his filings with the SEC are materially false, then that should not be the case.”
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 a disclaimer that it could be higher. Musk waived his right to increased due diligence when he signed the April merger agreement.
Twitter has argued in court that Musk is deliberately trying to scupper the deal because market conditions have deteriorated and the acquisition no longer serves his interests. In a court filing Thursday, he describes his counterclaims. as an imagined story “contradicted by evidence and common sense.”
“Musk invents representations that Twitter never made and then tries to selectively manipulate the extensive confidential information provided to him by Twitter to conjure up a violation of those alleged representations,” the company’s lawyers wrote.