The twists and turns in the Twitter-Elon Musk saga continues.
Elon Musk on Saturday tweeted that Twitter Inc.’s legal team accused him of violating a nondisclosure agreement (NDA) by revealing that the sample size for the social media platform’s checks on automated users was 100.
“Twitter legal just called to complain that I violated their NDA by revealing the bot check sample size is 100!” tweeted Musk, chief executive of electric car maker Tesla Inc., Reuters reported.
Musk on Friday tweeted that his $44-billion cash deal to take the company private was “temporarily on hold” while he awaited data on the proportion of its fake accounts.
He said his team would test “a random sample of 100 followers” on Twitter to identify the bots. His response to a question prompted Twitter’s accusation.
When a user asked Musk to “elaborate on process of filtering bot accounts,” he replied: “I picked 100 as the sample size number, because that is what Twitter uses to calculate <5% fake/spam/duplicate.”
Musk tweeted during the early hours of Sunday that he is yet to see “any” analysis that shows that the social media company has fake accounts less than 5 percent.
He later said that “There is some chance it might be over 90% of daily active users”.
However, some critics have raised question marks over Musk temporarily pausing the Twitter deal, pointing out that the Tesla chief, the world’s richest person, decided to waive due diligence when he agreed to buy Twitter on April 25, in an effort to get the San Francisco-based company to accept his “best and final offer”.
This could make it harder for him to argue that Twitter somehow misled him over fake accounts.
The spread between the offer price and the value of Twitter shares had widened in recent days, implying less than a 50 percent chance of completion, as investors speculated that the downturn would prompt Musk to walk or seek a lower price.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5 percent of users,” Musk told last week his more than 92 million Twitter followers.
Musk subsequently tweeted he was committed to the acquisition, sources added.
There was no immediate reaction from the investors that Musk tapped last week to raise $7.1 billion in funding.
Spam or fake accounts are designed to manipulate or artificially boost activity on services like Twitter. Some create an impression that something or someone is more popular.
Musk tweeted a Reuters story from ten days ago that cited the fake account figures. Twitter has said that the figures were an estimate and that the actual number may be higher.
The estimated number of spam accounts on the microblogging site has held steady below 5 percent since 2013, according to regulatory filings from Twitter, prompting some analysts to question why Musk was raising it now.
Musk is contractually obligated to pay Twitter a $1 billion break-up fee if he does not complete the deal, and the language in the deal contract appears to cap any damages that Twitter can seek from Musk to that level.
But the contract also contains a “specific performance” clause that a judge can cite to force Musk to complete the deal.
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