Twitter shares fall slightly, and Tesla rises slightly on news
Twitter shares slumped lower Monday after Tesla CEO Elon Musk doubled-down on his challenge to the company to prove its data on fake accounts and spam on the micro-blogging website, TheStreet reports.
In a Securities and Exchange Commission filing made public on Monday, Musk indicated he had sent a letter to Twitter executives seeking more information regarding the methods it used to calculate the company’s estimate that fake accounts comprise less than 5% of total users.
Musk, who waived his right to due diligence on the deal when it was unveiled earlier this spring, said Twitter is “transparently refusing to comply with its obligations under the merger agreement”, adding that he is not persuaded by its “lax testing methodologies”.
“Twitter has, in fact, refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company’s platform,” the letter stated. “Twitter’s latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written materials or verbal explanations, is tantamount to refusing Mr. Musk’s data requests.”
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