Foreign

Tesla CEO, Elon Musk Claims Twitter Is Hiding Key Witnesses He Needs In Buyout Fight

Tesla CEO, Elon Musk Claims Twitter Is Hiding Key Witnesses He Needs In Buyout Fight

Tesla CEO, Elon Musk Claims Twitter Is Hiding Key Witnesses He Needs In Buyout Fight

Tesla CEO, Elon Musk Claims Twitter Is Hiding Key Witnesses He Needs in Buyout Fight

In their court dispute over whether he must complete a $44 billion takeover of the firm, Elon Musk is reportedly accusing Twitter Inc. of concealing critical evidence.

ALSO, READ Elon Musk, Tesla CEO, Accuses Twitter Of Fraud In Buyout Deal

Bloomberg reports that Musk is complaining that the social media giant isn’t supplying the names of personnel who are directly in charge of determining how much of Twitter’s user base consists of spam and robot accounts.

People who wished to remain anonymous did so because they were not permitted to make this disclosure in public.

According to the persons, Musk’s attorneys have urged the judge in the lawsuit to order Twitter to identify the employees so the defense can obtain their records and interrogate them.

Tesla CEO, Elon Musk Claims Twitter Is Hiding Key Witnesses He Needs In Buyout Fight

A letter asking Delaware Chancery Court Judge Kathaleen St. J. McCormick to compel Twitter to hand over the names was filed Tuesday under seal. Under the court’s rules, Twitter’s attorneys have five business days to decide what should be redacted from the filing as proprietary information.

A Twitter spokesman declined to comment on the filing.

ALSO, READ Multibillionaire Elon Musk Sells $7 Billion Worth Of Tesla Shares

The letter comes as the Tesla Inc co-founder said Tuesday he is selling $6.9 billion of Tesla shares to avoid a sudden sale in the event he is forced to go ahead with the deal to acquire Twitter. That has prompted some analysts to predict the billionaire may settle the case.

The report said Twitter has handed over the names of “records custodians,” who aren’t as familiar with the data at issue, the people said. Musk wants McCormick to force Twitter to come up with the names of the employees charged with monitoring those accounts, they said.

Tesla CEO, Elon Musk Claims Twitter Is Hiding Key Witnesses He Needs In Buyout Fight

Both sides have issued a torrent of subpoenas to banks, investors, and lawyers involved in the teetering transaction as they seek ammunition for an October 17 trial.

“It’s another salvo in the discovery wars that are common in this kind of litigation,” said Carl Tobias, a University of Richmond law professor who specializes in securities and merger and acquisition law. “Both sides are jockeying for position by targeting different information.”

ALSO, READ Elon Musk’s Child Files Request To Change Name In Bid To Cut Ties With Tesla CEO

Twitter’s lawyers say they’ll need only four days in court to prove Musk is using questions about spam and bot accounts as a pretext to walk away from the deal. The company said it has turned over all its information about those accounts and that it intends to make Musk pay the $54.20 per share he originally agreed to.

Musk counters in court filings that Twitter’s handover of that material hasn’t been robust and that the company has failed to produce evidence that spam bots account for fewer than 5% of its active users, as it has said in regulatory filings. He argues this gives him a legitimate basis for canceling the buyout.

ALSO, READ Elon Musk, Tesla CEO, Accuses Twitter Of Fraud In Buyout Deal

He alleges Twitter’s disclosures show that the actual number of monetizable daily active users, or mDAU as the industry calls it, is 65 million less than the 238 million Twitter has claimed. He says Twitter also misrepresents how many of those users view advertising, the company’s main source of revenue. By his estimate, fewer than 16 million users see the majority of ads and should be counted as monetizable.


24SevenHUB.CO brings updates on the latest news, tech tips and information, job recruitments for Nigerians, foreigners and remote jobs for seekers, and much more… Here, you can read and share thoughts, ideas, and opinions and get real-time updates from around the globe.

Related Articles

Leave a Reply

Back to top button
error: Alert: Content is protected !!
%d bloggers like this: