Twitter will reportedly address Elon Musk’s concerns in regards to the variety of spam bots in its user base by providing full access to its internal platform data — a reversal that got here after the billionaire threatened to quash his effort to purchase the social media firm.
Twitter’s board of directors plans to permit Musk to review its data “firehose,” allowing the Tesla CEO and his legal team to access to each tweet posted to the platform every day, the Washington Post reported, citing a source aware of the matter.
Musk could receive access to the pipeline, which incorporates data on the tweets themselves in addition to the accounts and devices from which they originate, by as soon as this week, in response to the report.
In an SEC filing earlier this week, the billionaire’s team had alleged that Twitter refused access to critical data about its user base that might “facilitate his evaluation of spam and faux accounts on the corporate’s platform.”
Musk’s team threatened to back out of his $44 billion agreement to purchase Twitter. The billionaire has sought proof from Twitter to back up its claim that spam bots account for lower than 5% of its overall user base.
Twitter’s data “firehose” includes information on all tweets published on the platform.SOPA Images/LightRocket via Gett
Musk’s legal team has argued the information is crucial for the billionaire’s understanding of Twitter’s revenue stream and overall business model.
“As Twitter’s prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to organize for transitioning Twitter’s business to his ownership and to facilitate his transaction financing,” Musk’s attorney said within the SEC filing.
“To do each, he should have a whole and accurate understanding of the very core of Twitter’s business model — its lively user base,” their letter added.
Twitter will provide access to the “firehose” despite purported skepticism from its executives that Musk will glean any latest insights into its operations. Roughly two dozen firms already pay to receive access to the information stream.
Elon Musk faces a $1 billion breakup fee if he nixes the deal.Anadolu Agency via Getty Images
Musk has yet to personally reply to the report. An effort to succeed in Musk was not immediately successful.
Twitter didn’t immediately return a request for further comment, but an organization spokesperson provided a press release in response to the Washington Post’s report.
“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 said within the statement. “We consider this agreement is in one of the best interest of all shareholders. We intend to shut the transaction and implement the merger agreement on the agreed price and terms.”
Twitter shares were flat in trading Wednesday afternoon after the report’s publication. The stock remained at around $40, well below Musk’s offer of $54.20 per share.
Wedbush analyst Dan Ives said Twitter’s move could assuage Musk’s concerns in regards to the deal and end a standoff that has weighed on shares of each the social media and his electric vehicle company, Tesla, for days.
Elon Musk has threatened to nix the $44 billion Twitter takeover.Getty Images
‘This may be a giant step to get this major hot button issue across the fake accounts/bots front and center,” Ives tweeted.
Under the terms of the buyout agreement, Musk might be subject to a $1 billion breakup fee if he attempts to back out of the deal.
Some analysts have speculated that the billionaire can have gotten cold feet in recent days attributable to his massive personal investment within the transaction and a recent downturn within the broader tech market.
Reports said that Musk’s efforts to rearrange financing to finish the transaction had stalled this week following his threat to nix the deal. Musk is slated to pay $33.5 billion in money to cover the dealt, with debt financing accounting for the remaining of the acquisition price.