Billionaire Elon Musk Tries to Tank Twitter Deal

August 06, 2022

By: Piers Seidman  

In July, Twitter sued Elon Musk for trying to back out of his deal to buy the company.  The Tesla CEO said that his takeover of Twitter would continue if the social media platform can confirm how it measures whether users are real people or ‘spam bots’.  Musk sued Twitter accusing the company of fraud and breach of contract, including exaggerating the number of active users.

 Twitter replied that Musk is trying to back out of the deal because the market has worsened and the deal no longer serves Musk’s interests.  NBC News reported that a court filing describes Musks’ claims as “contradicted by the evidence and common sense.”  

“Musk invents representation Twitter never made”, wrote lawyers working for Twitter, “and then tries to wield, selectively, the extensive confidential data Twitter provided him to conjure a breach of those purported representations”

Musk Tweeted on Saturday: “If Twitter simply provided their method of sampling 100 accounts and how they’re confirmed to be real, the deal should proceed on original terms.  However, if it turns out that their SEC filings are materially false, then it should not.”

Twitter did not comment.  However, the social media platform has shared with the Securities and Exchange Commission that around 5% of users are fake or spam, with a disclaimer, that it could be higher.   

Twitter and Musk will meet in a Delaware Court in October.