Gadgets Africa
  • News
    Twitter blocks links to one-week-old rival Threads

    Twitter blocks links to one-week-old rival Threads

    Twitter CEO Yaccarino debunks alleged decline in traffic

    Twitter CEO Yaccarino debunks alleged decline in traffic

    Microsoft to layoff nearly 300 workers

    Microsoft to layoff nearly 300 workers

    Twitch adds Stories features to app

    Twitch adds Stories features to app

    Meta to launch twitter-like ‘threads’ app

    Meta to launch twitter-like ‘threads’ app

    Coinbase shares surges after Cboe names crypto exchange

    Coinbase shares surges after Cboe names crypto exchange

    Tweeps react to Twitter accounts restriction

    Tweeps react to Twitter accounts restriction

    WhatsApp introduces QR-code method for data transfer

    WhatsApp introduces QR-code method for data transfer

    ChitChat: Zambian startup, Mastercard launch encrypted messaging platform

    ChitChat: Zambian startup, Mastercard launch encrypted messaging platform

  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders
Gadgets Africa
No Result
View All Result

Musk accuses Twitter of fraud as buyout battle escalates

by Agency Report
August 5, 2022
in News
Reading Time: 3 mins read
Why I am buying Twitter - Elon Musk

Elon Musk

Share on FacebookShare on TwitterShare on Telegram

Elon Musk has accused Twitter of fraud, alleging the social media platform misled him about key aspects of its business before he agreed to a $44 billion buyout, as their court fight heats up.

The Tesla boss lodged the claim as he fights back against Twitter’s lawsuit seeking to force him to close the deal, which he has tried to cancel.

Musk argued in the filing to a Delaware court that the number of users actually shown advertising on the platform is about 65 million lower than the firm’s 238 million figure.

“Twitter’s disclosures have slowly unravelled, with Twitter frantically closing the gates on information in a desperate bid to prevent the Musk Parties from uncovering its fraud,” the claim alleged.

Musk is asking the court to free him from the agreement and make Twitter pay him an amount in damages to be determined at trial, which set to open on October 17.

Billions of dollars are at stake, but so is the future of Twitter, which Musk has said should allow any legal speech — an absolutist position that has sparked fears the network could be used to incite violence.

In its own filing, Twitter rejected the mercurial billionaire’s argument, calling it “as implausible and contrary to the fact as it sounds.”

“According to Musk, he — the billionaire founder of multiple companies, advised by Wall Street bankers and lawyers — was hoodwinked by Twitter into signing a $44 billion merger agreement,” Twitter said.

Musk last week filed his countersuit, which was finally made public on Thursday.

The entrepreneur accused Twitter of not just deceiving him, but also of lying to US market regulators.

Musk relied on Twitter’s filings to the Securities and Exchange Commission because he thought doing his own diligence — digging into the company’s value — “costly and inefficient”, his court claim said.

Analyst Dan Ives said the social media platform’s share price gave a clear idea of how investors think the fight will end.

“The countersuit Musk filed against Twitter raised some interesting points, however legally speaking the Street views this more of a sign of weakness than strength for Musk,” he told AFP.

Twitter shares closed up 3.5 per cent at $42.52 on Friday, while Tesla shares ended down more than 6.5 per cent.

– ‘Twitter has complied in every respect’ –

 

The legal fight is gathering speed as preparations have begun for the five-day trial in Delaware’s Chancery Court, which specializes in complex, high-stakes business world battles.

This battle flows from Musk wooing Twitter’s board with a $54.20 per-share offer in April, but then in July announced he was terminating their agreement because the firm had misled him regarding its tally of fake and spam accounts.

Twitter has stuck by its estimates that bots make up fewer than five per cent of users.

The social media platform told the court that Musk’s claim that the false account figure tops 10 per cent is “untenable.”

Twitter also disputed Musk’s assertion he has the right to walk away if its bot count is found to be wrong since he didn’t seek information on that topic when he made the buyout offer.

The company accuses Musk of contriving a story to escape a merger agreement that he no longer found attractive.

“Twitter has complied in every respect with the merger agreement,” the company said in a court filing.

“Musk’s counterclaims, based as they are on distortion, misrepresentation, and outright deception, change nothing.”

The social media platform has urged shareholders to endorse the deal, setting a vote on the merger for September 13.

While fielding questions at an annual Tesla shareholders meeting Thursday, Musk was asked whether his potential ownership of Twitter might distract from his running of the electric car company.

“I think Tesla, you know, would continue to do very well even if I was kidnapped by aliens, or went back to my home planet,” he joked, drawing laughter and applause.

“To be frank, I don’t have an easy answer,” Musk added.

He assured shareholders that, for now, he has no plans to leave his Tesla chief role.

Tags: Elon MuskTwitter
ADVERTISEMENT

Related Posts

Twitter blocks links to one-week-old rival Threads
News

Twitter blocks links to one-week-old rival Threads

by Alex Omenye
July 11, 2023
Twitter CEO Yaccarino debunks alleged decline in traffic
News

Twitter CEO Yaccarino debunks alleged decline in traffic

by Alex Omenye
July 11, 2023
Microsoft to layoff nearly 300 workers
News

Microsoft to layoff nearly 300 workers

by Joy Onuorah
July 11, 2023
Twitch adds Stories features to app
featured

Twitch adds Stories features to app

by Alex Omenye
July 8, 2023
Next Post
N1.3bn auto council property rot away - Ex-DG

N1.3bn auto council property rot away - Ex-DG

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

WhatsApp launches ‘Communities’ feature for larger chat group

Transaction: WhatsApp announces new business feature

November 18, 2022
Why Instagram'll remove 'Shop' tab from home feed

Why Instagram’ll remove ‘Shop’ tab from home feed

January 11, 2023

Trending.

Netflix to debut subscription with ads

Netflix to debut subscription with ads

October 14, 2022
Lyft CEO reveals company's readiness for self-driving cars

Lyft CEO reveals company’s readiness for self-driving cars

May 13, 2023
Firefly: Adobe's AI tech access to big clients

Adobe launches AI tools for marketers

March 21, 2023
New WhatsApp feature allows users edit sent messages - Zuckerberg

New WhatsApp feature allows users edit chats – Zuckerberg

May 22, 2023
N2.6bn debt: NBC closes AIT, Silverbird, others

N2.6bn debt: NBC closes AIT, Silverbird, others

August 19, 2022
Gadgets Africa

© 2023 Gadgets Africa.

Navigate Site

  • News
  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders

Share

No Result
View All Result
  • News
  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders

© 2023 Gadgets Africa.

Go to mobile version