Twitter to comply with Elon Musk’s demand for data on fake accounts – The Hollywood Reporter

Twitter will comply with Elon Musk’s request for internal data on spam bots and fake accounts after threatening to waive the deal, washington articles reported on Wednesday. Citing a person familiar with the status of negotiations, the report says the company will provide access to a so-called “repository” of data that includes a real-time recording of more than 500 million tweets posted daily. and information about the accounts and devices from which the posts are sent.

The deal is meant to boost Musk’s stalled $44 billion purchase of Twitter. The billionaire on Monday officially threatened to withdraw from the purchase, accusing the company of lying about its users being bots by withholding internal data. The move is widely seen as a reason to lower the price of the deal because Twitter’s stock has fallen sharply from the valuation Musk proposed to buy the company. Some analysts have speculated that he plans to extend it outright because he has committed more than $33 billion of his own money, mostly tied up in Tesla stock, to buy Twitter.

In fact, Twitter has refused to provide the information Mr. Musk has repeatedly requested since May 9, 2022 to facilitate the assessment of spam and fake accounts on its platform. company,” Musk’s attorney wrote in a leaked letter to Twitter. in an application to the Securities and Exchange Commission. “Twitter’s latest offer is simply providing additional details regarding the company’s own testing methodology, whether through written documentation or verbal explanation, which is equivalent to denied Musk’s request for data.”

Twitter has repeatedly said it will enforce the deal.

Twitter’s reversal comes a day after shareholder John Solak sued the company in Delaware Chancery Court to force the social media platform to share internal documents about the information Musk sought. He accused Twitter of failing to disclose the exact number of bots that make up its 230 million users, in violation of its obligations to investors.

While the fire plant’s data could hypothetically provide a wealth of information about spam volumes and bot activity, it’s not yet clear if Musk’s team will use or analyze such massive data. how. It could be very difficult for Musk to walk away from the deal alleging that Twitter misrepresented the material he relies on because the company has qualified in its securities filings that it estimates spam to account for less than 5% of all emails. Daily active users can earn may be too low.

“In making this decision, we applied a weighty judgment, so our estimates of fake or spam accounts may not be an accurate representation of the actual number of accounts. and the actual number of spam or fake accounts may be higher than we estimate,” the SEC filing read.

Further reducing Musk’s chances of renegotiating the sale, there is no industry standard for calculating monetized daily active users. Estimate numbers based on inner definitions. Twitter has qualified in a securities filing that its measurements may differ from estimates by third parties.

Musk’s proposed takeover of Twitter includes a $1 billion breakup fee but also a provision that would allow the company to force him to abide by the agreement. If either party sues, the court can order Musk to close the sale.

After unilaterally delaying his planned acquisition of Twitter, Musk sent the company’s stock plummeting amid constant criticism and uncertainty over whether he would take control of the social media platform. Twitter in May was sued by a Florida pension fund seeking to block the deal.

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