Elon Musk has threatened to tug out of a $44 billion deal for Twitter, saying the corporate has refused to offer him details about its fake accounts.
So Twitter now plans to offer Mr. Musk access to a big swath of its data, potentially right down to its very last tweet.
The social media company has agreed to permit Mr. Musk direct access to its “firehose,” the stream of tens of millions of tweets that flow through the corporate’s network on a day by day basis, in line with an individual with knowledge of the choice. Whether Mr. Musk will get full or partial access to that “firehose” is unclear.
The knowledge would give Mr. Musk the tools to discern what number of accounts on Twitter’s platform could also be fake. But it surely isn’t more likely to help him reach Twitter’s conclusion that 5 percent of its lively accounts are fake, because the company uses a unique methodology involving proprietary data and human evaluation to get to that figure. Mr. Musk has said he doesn’t consider that just 5 percent of Twitter’s lively accounts are fake.
Twitter’s move may make it tougher for Mr. Musk to terminate the deal. On Monday, his lawyers sent a letter to the corporate, accusing it of stonewalling his efforts to acquire information that was essential to closing the acquisition. For weeks, Mr. Musk has also tweeted increasingly barbed comments about Twitter’s fake accounts, appearing to put the groundwork to renegotiate or get out of the agreement.
Mr. Musk agreed to purchase Twitter in April for $54.20 a share. If the deal falls apart, there may be a $1 billion breakup fee. However the agreement features a “specific performance clause,” which provides Twitter the appropriate to sue him and force him to finish or pay for the deal, as long as the debt financing he has corralled stays intact.
A Twitter spokesman declined to comment on giving Mr. Musk access to the stream of tweets, but referred to a previous statement.
“Twitter has and can proceed to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement,” Twitter has said. “We consider this agreement is in the most effective interest of all shareholders. We intend to shut the transaction and implement the merger agreement on the agreed price and terms.”
Mr. Musk didn’t reply to a request for comment. The Washington Post earlier reported that Mr. Musk got access to the Twitter firehose.
An organization often shares confidential data with its acquirer, with the parameters around data sharing negotiated before signing any deal. But Mr. Musk waived due diligence when he agreed to purchase the social media company, and Twitter began sharing confidential information with him last month.
One in every of Twitter’s concerns with sharing information has been Mr. Musk’s prior statements, each publicly and to the corporate, that he was considering starting a rival social media service, The Latest York Times has reported. Typically, such matters are addressed by limiting who would have access to such information.
Mr. Musk said in his letter this week that he would make sure that a nondisclosure agreement sure anyone reviewing confidential data provided by Twitter. He has also said he wouldn’t retain or share sensitive details about Twitter if the deal fell apart.
Once Mr. Musk receives access to Twitter’s stream of tweets, he’s more likely to need a team of experts to research the information, in addition to the computing capability to process and store the big volume of data, company insiders said.
How Elon Musk’s Twitter Deal Unfolded
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A blockbuster deal. Elon Musk, the world’s wealthiest man, capped what seemed an improbable attempt by the famously mercurial billionaire to purchase Twitter for roughly $44 billion. Here’s how the deal unfolded:
The initial offer. Mr. Musk made an unsolicited bid price greater than $40 billion for the influential social network, saying that he desired to make Twitter a personal company and that he wanted people to give you the chance to talk more freely on the service.
While the knowledge would offer Mr. Musk insight into Twitter’s number of faux accounts, it might also give him data mandatory for planning the business should the acquisition close. Mr. Musk has told investors that he wants to scale back Twitter’s reliance on promoting revenue and introduce a recent payments business.
For years, Twitter calculated its variety of users the way in which lots of its peers do, by reporting the number of people that actively use the service on a monthly basis. But in 2019, the corporate switched to what it said was a more accurate metric to gauge the health of the business: “monetizeable day by day lively users” — the variety of people who find themselves lively on the positioning day by day and will be used to generate promoting revenue.
As of April, Twitter reported that it had 229 million monetizeable day by day lively users. Of those, Twitter has estimated that 5 percent are fake.
On Monday, Ken Paxton, the attorney general of Texas, also said he was opening an investigation into fake accounts on Twitter and the way they affect residents within the state. Strategists saw the move as a politically expedient approach to align with Mr. Musk. Tesla, Mr. Musk’s electric automobile business, has its headquarters in Austin, Texas. Mr. Musk has also relocated to Texas from California, and his SpaceX rocket company has a site within the state.