After backing down on the $44 billion acquisition, the tycoon persisted with the fake accounts.
Elon Musk said today that his planned $44 billion acquisition of Twitter should go ahead if the company can confirm some details about how it measures whether user accounts are spam or real people.
“If Twitter simply provides its sampling method of 100 beads and how they are confirmed to be real, the deal must continue on original terms,” Musk tweeted early on Saturday.
“However, if it turns out that your SEC filings are materially false, then you should not do so,” the businessman added.
Twitter responded immediately, rejecting the comment.
The billionaire and CEO of Tesla has been trying to back out of his April deal to buy the social media company. For that reason, Twitter decided to sue him last month to complete the acquisition.
Musk was quick to respond, accusing Twitter of misleading his team about the true size of its user base and other issues that he said amounted to fraud and breach of contract.
This week Musk accused Twitter of “fraudin a countersuit over the aborted deal to acquire the social network for $44 billion, which he claims concealed necessary information and misled his team about its true user base, press reports published.
Musk’s lawyers accuse Twitter of having “masked the truth” about the number of monetizable daily users, which the social network calculates in 238 million.
The trial for the purchase
Both parties go to a judgment in October in a Delaware court. Musk filed his countersuit confidentially last week and unsealed it Thursday night in the Delaware Court of Chancery, the Wall Street Journal reported. This court handles internal business matters.
The lawsuit also alleges that most of Twitter’s advertising reaches a small fraction of the user base, according to the Post. In an unexpected twist, twitter responded to reject Musk’s accusations before the countersuit was publicly known.
Twitter said Musk’s reasoning is “a story, fabricated in an effort to try and escape a merger deal that Musk no longer found attractive.”
“Counterclaims are a story made exclusively for litigation, and evidence and common sense they contradict them“Twitter replied.
“Musk fabricates statements that Twitter never made and then selectively attempts to use the extensive sensitive data provided to him by Twitter to invoke a violation of those alleged statements,” the company added.
The company repeatedly reiterated to the Securities and Exchange Commission an estimate that less than 5% of user accounts are fake or spam, with a disclaimer. that it could be higher.
Still, it’s not the best public moment for Musk. A California regulator has accused the Tesla company of misleading consumers about its driver assistance and filed a lawsuit that could bar the automaker from selling its production in the state.
In its filing, the Department of Motor Vehicles (DMV) said that Tesla advertised its autopilot and autonomous driving technologies as more capable than they really are, the Los Angeles Times reported.
In June, Tesla owner Elon Musk highlighted the importance of fully autonomous driving, saying that without it the value of his company would be “close to zero”.