A number of setbacks have been suffered by Musk in his attempt to acquire the micro-blogging site. As Musk threatens to withdraw his $44 billion merger offer, there is a stumbling block.
Musk's lawyers wrote a letter to the legal officer of the social media company, warning them that he could end the deal if they didn't tell him how many fake accounts they have. The letter was included in a filing with the SEC.
Under the terms of the merger agreement, Musk's rights to information were denied. Musk has been asking for data on fake accounts. Last month, the deal was put on hold due to the platform's problems.
According to the filing, Mr. Musk believes that the company is trying to undermine his information rights under the merger agreement. It is clear that this is a clear violation of the merger agreement and Mr. Musk has the right to walk away from the deal.
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The request for comment was not immediately responded to by the social networking site. The company said in a statement that it would continue to share information with Musk in order to complete the deal.
Musk's legal team said that his request for information is necessary in order to transition ownership of the company. According to the letter, this information will allow Musk to have a complete and accurate understanding of the core of the business model of the service.
The fake accounts account for less than 5% of the platform's users. The number of fake accounts on the platform was not accurately represented by this figure.
According to Musk's legal team, he doesn't understand the company's refusal to allow him to evaluate the estimates.
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