Twitter to Present Musk with its ‘Full Firehose’ of Tweets because it Works to Finalize Takeover Deal

The Twitter/Elon Musk saga is transferring to the subsequent uncomfortable stage, with Twitter now planning to supply Musk’s workforce with its ‘full firehose’ of tweets, with a purpose to let Musk decide for himself the quantity of pretend and bot profiles within the app.

Earlier this week, Musk’s authorized workforce filed an official statement with the SEC by which it defined that Musk is not going to undergo together with his $44 billion takeover of the corporate if Twitter’s unable to supply proof to assist its declare that pretend accounts and bots make up simply 5% of its energetic consumer base.

Musk’s workforce asserts that that is essential info, as Twitter depends on its attain knowledge to maximise its core adverts enterprise, and if a big proportion of its customers aren’t precise, actual folks, that materially adjustments the deal.

To date, Twitter has stood by its numbers, which it says have been measured by way of processes which have been accepted by the SEC previously. Now, it’s seeking to hand over all the data that it could to Musk’s workforce.  

As reported by The Washington Post:

After a weeks-long deadlock, Twitter’s board plans to adjust to Elon Musk’s calls for for inside knowledge by providing entry to its full “firehose,” the huge stream of knowledge comprising greater than 500 million tweets posted every day, in response to an individual conversant in the corporate’s pondering.”

What, precisely, Musk will then do with all that data is tough to say, however clearly, Twitter’s authorized workforce has suggested that that is the one solution to appease Musk’s calls for, offering all the data that it could, which is able to then allow Musk and Co. to develop their very own evaluation course of to find out the quantity of pretend profiles within the app.

What occurs from there may be arduous to say. If Elon comes up together with his personal methodology, and finds that the pretend profile depend is extra like 20%, what then?

Some have famous that Musk waived numerous due diligence components in his preliminary takeover supply, with a purpose to hasten the deal, which signifies that he basically has to undergo with the acquisition, it doesn’t matter what.

However clearly, Elon himself believes that received’t maintain up on this respect.

And he’s doubtless proper, however with regards to bots and pretend accounts, the problem for Elon might be in proving that Twitter acted with ill-intent – i.e. has Twitter deliberately misreported its numbers with a purpose to improve its market place?

I might counsel that might be tough to show definitively, even when Musk can give you his personal detection methodology – if Musk’s workforce comes up with a greater resolution for detecting bots, I believe that Twitter will say ‘thanks for that, we weren’t conscious of that previously’, and the deal would then should undergo as deliberate, as a result of Twitter hasn’t acted in unhealthy religion in its previous disclosures.

Although there may be one other argument – that Musk can wriggle out of the deal if he’s in a position to show that a ‘main occasion’ has considerably altered Twitter’s worth, which then adjustments the parameters of the preliminary deal. That’d be so much tougher to prosecute, however perhaps, if Musk can give you a breakthrough reporting course of, which exhibits that many greater than 5% of Twitter’s energetic customers are pretend, that could possibly be labeled as a ‘main occasion’ in itself?

That looks like weaker authorized floor, however Musk appears to imagine that if he’s in a position to present clear proof that the quantity of pretend profiles on the platform is certainly a lot greater than Twitter says, that he’ll be capable of stroll away, or perhaps scale back his supply worth.

In actuality, I’m unsure that’s truly how this may play out.

In any occasion, Twitter’s transferring forward with its preparations for an Elon takeover, with Reuters reporting that it’s planning to maintain a shareholder vote by early August to consummate the deal.

On the identical time, legal challenges proceed to supply extra distractions for the corporate, with Twitter additionally preventing a January sixth committee request for its workers’ inside communications – “together with Slack messages about moderating Tweets associated to the Capitol assault”.

As per Rolling Stone:

“The social media large is asserting a First Modification privilege to push again on the panel’s demand for communications about moderating tweets associated to the Capitol rebel.”

In fact, Twitter’s consistently dealing with challenges and problems with this sort. However you may solely think about that Musk’s authorized workforce could be grinding their enamel on the considered having to cope with such in future.

If such points are bothering Elon himself, nonetheless, he’s hardly exhibiting it. He’s too busy tweeting concerning the believability of ‘Red Riding Hood’, and setting his sights on one other social app.

It’s like he’s simply now realizing that there’s a whole lot of rip-off exercise on social platforms, which you’d assume that somebody would take extra observe of earlier than providing $44 billion to buy a social app.

Will Elon ultimately turn out to be the proprietor of Twitter? On stability, taking authorized issues under consideration, and looking out on the public-facing proof, that also appears the almost certainly consequence.

However there’s much more to return earlier than we attain a last conclusion.

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