Elon Musk has threatened to walk away from his $44bn purchase of Twitter, accusing the social media company of failing to provide enough information about fake and bot accounts.
Musk has repeatedly criticised Twitter’s claim that less than 5 per cent of its daily active users are bots, warning last month that his takeover “cannot move forward” unless the platform provides proof, reports Financial Times.
Ed Morrissey at HotAir says: As the single largest shareholder of Twitter at that time, Musk could have demanded a full accounting before any bid. If Twitter failed to comply, Musk could have forced the issue into court.
“Even as a bidder, Musk could have made his “best and final offer” contingent on an outside estimate of the bot content on the platform,” Morrissey continues. “And yet here we are, in what looks like a way to get out of the deal without coughing up the billion-dollar cancellation fee.”
Musk’s attorneys are trying to paint this as a “material breach” that will negate the buyout agreement, Morrissey says.
Morrissey is the lawyer so we can’t say, but does Musk’s motive matter? If they aren’t providing information on fakes and bots, why aren’t they? He paid for less than 5% bots, period. They need to cough up the documents.
Mr. Musk’s efforts to secure more financing to limit his liability is now on hold.
In defense of Mr. Musk, it was previously reported that Musk needed the data from Twitter to secure financing. To some of us, it seems like Twitter is sabotaging the deal.
If I were him, I wouldn’t buy that creepfest of haters and liars from Hell.
Even the president was fraudulently ‘elected(?)’…lest we forget!!!
Twitter’s official filing with the SEC stated that less than 5% of its users are bots. Musk like every other investor and analyst relied upon this representation and if it’s substantially untrue and it can be proven that the POS who runs Twitter knew or had reason to know the statements were not true this is ipso facto,undeniable fraud. The impact is material in that Twitter’s EBITA (not profits) were less than $1 billion in 2021 and if there are more than 5% or even 20 or 30% this means the advertisers were defrauded as they say forreal eyes not fake bots. This means that Twitter owes millions to these defrauded advertisers and there are No profits paper or otherwise. This is classic securities fraud and the whole bunch needs to join Ms. Holmes in prison.
Elon Musk is about to expose BigTech for the huge fraud it has become. It will soon be known that Twitter, like Facebook and Google run armies of scam bots whose job is to generate revenue for the platforms and to bid up the cost of advertising. This fraud,well known and encouraged by the officers and directors of Twitter and other platforms, has cost advertisers hundreds of billions in fake advertising charges. In Twitter’s case its EBITA was less than 1 billion last year. All of this profit will soon be shown to be fraudulent. It was created by false advertising charges. This,my friends, is the Enron scandal on steroids. It makes Thanos and Ms. Holmes a small time heist. It is the biggest financial fraud of this century. BigTech’s earnings are a fraud. Now, is there anyone out there who believes this is not true? Is there anyone who believes that Elon is not going to expose it? What it basically means is that all of the inflated income and profits of Twitter and then Facebook and Google are going to have to be restated and it will soon be revealed these companies are worth a fraction of their total current value. Elomn will buy them all up for a song, cast out the fraudsters and reorganize them as the service companies they really must be. This will be the greatest service anyone has ever done for his fellow man. No wonder, he is concerned about “dying mysteriously.”
Currently he is in control and should maintain that control as long as possible without paying a cent until he has them in court trying to explain their fraud.
I say do not walk away, I say buy em at the correct price having established that in a court…or bury em.
Should he walk away “they” will not have to face the consequences of their fraud and will retain control over this fake platform.