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Musk did not seek due diligence and the $44b deal will be completed: Twitter

Twitter said it is 'committed to completing the transaction on the agreed price and terms as promptly as practicable'.
Written by Julian Bingley on

The Twitter buyout saga led by Elon Musk continues -- the billionaire has clarified comments he made at the All-In Summit in Miami regarding his belief that 20% of accounts on the platform are fake or spam, an issue that's led Musk to declare the $44 billion acquisition on hold.

"20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher. My offer was based on Twitter's SEC filings being accurate. Yesterday, Twitter's CEO publicly refused to show proof of <5%. This deal cannot move forward until he does," Musk tweeted.

Meanwhile, Twitter released its account of negotiations with Musk on Tuesday, revealing that the billionaire did not raise questions regarding non-public issues pertaining to the social media company -- issues that he cited in declaring the acquisition on hold.

Read: Musk may lower Twitter offer as Agrawal addresses spam concerns again

According to Reuters, Twitter's proxy statement [PDF], which outlined relevant details for shareholders to vote on the deal -- and as delivered to the US Securities and Exchange Commission -- depicts Musk as rushing to seal a deal with his "best and final" offer. In April this year, Twitter's proxy statement claimed that the Tesla CEO negotiated the $44 billion deal without carrying out any due diligence.

"Mr. Musk did not ask to enter into a confidentiality agreement or seek from Twitter any non-public info regarding Twitter," Twitter said in its statement.

Musk has still not ruled out the possibility of the deal going ahead at a lower price point after claiming it was a possibility at the Miami Summit.

"It really depends on a lot of factors here. I'm still waiting for some sort of logical explanation for the number or sort of fake or spam accounts on Twitter. And Twitter is refusing to tell us. This seems like a strange thing," Musk said.

Twitter later said through its proxy statement that it remains "committed to completing the transaction on the agreed price and terms as promptly as practicable".

Meanwhile, the statement shows that Twitter's CEO, Parag Agrawal, is entitled to a $60.2 million payment if the deal closes, the company's chief financial officer, Ned Segal, would receive $46.4 million, whilst Twitter's top lawyer, Vijaya Gadde, would be paid $30 million.

Musk also allegedly told Twitter that he contemplated starting a competitor, according to the proxy statement.

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