Musk has found a new reason for not buying Twitter
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Tesla and SpaceX owner Elon Musk has found a new reason to terminate the deal to buy the social network Twitter for $44 billion. reported Bloomberg, citing documents filed by the billionaire’s lawyers in court. The hearing will begin on October 17th.
The reason for the possible termination of the deal was the statement of the former head of Twitter security Peter Zatko, who was fired earlier this year. He accused the company of insufficient protection of user data. In particular, he reported shortcomings in the work of the social network with personal data, including the use of outdated software. He also drew attention to the fact that the company’s management hid information about violations of cybersecurity rules, including hacking user accounts. Twitter called these claims false.
The lawyers filed a statement saying Twitter violated the terms of the merger deal by failing to address deficiencies in data privacy issues. Prior to this, Musk had been trying for several months to back out of the deal. One of the reasons, the billionaire called an inflated number of real Twitter users due to the large number of robot accounts. This was also reported by Zatko, who said that the company’s management does not know the exact number of fake accounts.
In turn, Twitter management claims that the share of such accounts is no more than 5% of the total number of users. According to the billionaire, fake accounts can exceed 20-25% of all Twitter accounts. The purchase agreement was reached in April, but on July 8, Musk officially refused to buy the social network and notified the company about it.
Later, Twitter management filed a lawsuit against him in order to close the deal. According to the company, Musk is pulling out of the deal due to the decline in the value of the shares of the social network. Now they cost about $40 apiece, while Musk originally offered $54.2 for them. At the end of July, Musk filed a counterclaim, details of which were not disclosed.
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