Twitter Inc TWTR shares are trading lower Monday after Tesla Inc TSLA CEO Elon Musk on Friday filed to terminate his proposed deal with the social media company.
"While Section 6.4 of the Merger Agreement requires Twitter to provide Mr. Musk and his advisors all data and information that Mr. Musk requests 'for any reasonable business purpose related to the consummation of the transaction,' Twitter has not complied with its contractual obligations," Musk's attorney said Friday in a letter attached to the SEC filing.
Related Link: Trending On Twitter: Elon Musk Generates Heaps Of Ridicule And Sympathy For Nixing His Twitter Purchase
Musk has claimed that the number of bots or spam accounts on Twitter is much higher than the company indicates (5%). Twitter executives argued last week that the company manually reviews thousands of accounts each quarter, which has helped them to accurately determine the 5% bot number.
Twitter also said it uses internal data, like IP addresses or phone numbers, to confirm the number of bot accounts. The company even estimated that the true number of bot accounts is significantly lower than what was previously disclosed in filings.
Twitter said it will pursue legal action to enforce the agreement. Musk responded with a meme.
— Elon Musk (@elonmusk) July 11, 2022
TWTR Price Action: Twitter has traded between $73.34 and $31.30 over a 52-week period.
The stock was down 6.81% at $34.30 at press time, according to data from Benzinga Pro.
Photo: Photo Mix from Pixabay.
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