Tag Archives: Twitter Inc

Elon Musk might buy Twitter—what you’d have if you invested $1,000

Tesla and SpaceX CEO Elon Musk is reviving his offer to buy Twitter for $54.20 per share, which is about $44 billion, following a tense legal battle between himself and the social media platform, according to a regulatory filing.

Twitter issued a statement indicating it intends to close the deal at the original agreed-upon price after Musk’s announcement.

Twitter shares closed at a price of $52 per share on Oct. 4, following the news of Musk’s planned acquisition. That reflects a 22.2% increase from the prior day’s close of $42.54.

If you had invested $1,000 into Twitter a year ago, you’d have less money currently. Your investment would be worth around $890 as of Oct. 4, according to CNBC’s calculations.

However, if you’d invested $1,000 into Twitter five years ago, your investment would have nearly tripled in value and be worth around $2,929 as of Oct. 4, per CNBC’s calculations.

And if you had invested $1,000 into Twitter when the company went public in 2013 at the offer price of $26 per share, your investment would be worth about $2,000 as of Oct. 4 before fees, CNBC found.

Meanwhile, Tesla shares closed at $249.44 per share on Oct. 4. The electric vehicle maker’s shares are currently down about 32% in 2022.

Musk and Twitter have been locked in a battle of “deal or no deal” since April, when the billionaire initially offered to buy the social media platform for $44 billion. However, Musk attempted to back out of the deal in July. Twitter then sued him to force him to complete the deal, and the two parties were scheduled to go to trial on Oct. 17 in Delaware.

If you’re considering investing in Twitter, Tesla or another publicly traded company remember: Given the unpredictability of the stock market, you shouldn’t use a stock’s past performance as an indicator of how well it will perform in the future.

Rather than attempting to select individual stocks, a passive investment strategy tends to make sense for most investors. Investing in an index like the S&P 500, which tracks the stock performance of 500 large American publicly traded companies, can be a great way to start.

As of Oct. 4, the S&P 500 was down close to 12% compared to 12 months ago. However, the index has grown by about 49% since 2017 and increased by nearly 117% since 2013.

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Don’t miss: Apple just announced its new iPhone 14—here’s how much you’d have if you invested $1,000 a decade ago

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Elon Musk’s Twitter plans may take inspiration from Chinese super apps

Elon Musk’s revived $44 billion deal to buy Twitter sparked fresh debate over what the billionaire will do with the service if he eventually owns it.

On Tuesday, Musk tweeted that buying Twitter is an “accelerant to creating X, the everything app.” He did not provide further details.

Musk may be hinting toward so-called “super apps” which are popular in China and other parts of Asia and pioneered by the likes of Chinese technology giant Tencent.

Super apps is a term to describe an app that often acts as a one-stop shop for all your mobile needs. For example, you might order a taxi or food via the app and at the same time do payments and messaging. This eliminates the need to have multiple apps for different functions.

Chinese app WeChat, run by Tencent, is the biggest super app in the world, with over a billion users.

In WeChat, users can message people, do mobile banking, pay for things online or in store by scanning a barcode, play games, post videos, do online shopping, hail a car and many other things.

When Musk talks about “the everything app,” he could be thinking about WeChat.

The Tesla CEO has previously expressed admiration for WeChat calling the app “great” during a town hall with Twitter employees in June. Musk said there is no WeChat equivalent outside of China.

“And I think that there’s a real opportunity to create that,” Musk told employees. “You basically live on WeChat in China because it’s so useful and so helpful to your daily life. And I think if we could achieve that, or even close to that with Twitter, it would be an immense success.”

Musk said that he wants at least a billion people using Twitter, up from 237.8 million at the end of the second quarter.

Tencent runs the ubiquitous Chinese messaging app WeChat. The company has a short form video feature with in the app and has began to monetize that through video ads in the feed. Tencent said such ads could become a “substantial” source of revenue in the future.

Budrul Chukrut | Sopa Images | Lightrocket | Getty Images

One of WeChat’s biggest features is WeChat Pay. This is a feature where users can scan a barcode in a store to pay via their mobile or they can send money to friends via the chat function. WeChat Pay can also be used for purchases online.

Musk said during the town hall that he thinks that payments within Twitter would be an “interesting thing to do.”

However, super apps like WeChat haven’t really taken off in a big way in Europe, the U.S. and other western markets.

WeChat meanwhile is heavily censored in China, something Musk is unlikely to do with Twitter, given his past criticisms of the platform’s content moderation strategy which the billionaire feels has stifled free speech.

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Deal back on? Elon Musk gets closer to buying Twitter

The tumultuous saga of Elon Musk’s on-again off-again purchase of Twitter took a turn toward a conclusion Tuesday after the mercurial Tesla CEO proposed to buy the company at the originally agreed-on price of $44 billion.

Musk made the surprising turnaround not on Twitter, as has been his custom, but in a letter to Twitter that the company disclosed in a filing Tuesday with the U.S. Securities and Exchange Commission. It came less than two weeks before a trial between the two parties is scheduled to start in Delaware.

In response, Twitter said it intends to close the transaction at $54.20 per share after receiving the letter from Musk. But the company stopped short of saying it’s dropping its lawsuit against the billionaire Tesla CEO. Experts said that makes sense given the contentious relationship and lack of trust between the two parties.

“I don’t think Twitter will give up its trial date on just Musk’s word — it’s going to need more certainty about closing,” said Andrew Jennings, professor at Brooklyn Law School, noting that the company may also be worried about Musk’s proposal being a delay tactic. After all, he’s already tried to unsuccessfully postpone the trial twice.

Trading in Twitter’s stock, which had been halted for much of the day pending release of the news, resumed trading late Tuesday and soared 22% to close at $52.

Musk’s proposal is the latest twist in a high-profile saga involving the world’s richest man and one of the most influential social media platforms. Much of the drama has played out on Twitter itself, with Musk — who has more than 100 million followers — lamenting that the company was failing to live up to its potential as a platform for free speech and had too many bots.

While some logistical and legal hurdles remain, Musk could be in charge of Twitter in a matter of days — however long it takes him and his co-investors to line up the cash, said Ann Lipton, an associate law professor at Tulane University.

A letter from Musk’s lawyer dated Monday and disclosed by Twitter in a securities filing said Musk would close the merger signed in April, provided that the Delaware Chancery Court “enter an immediate stay” of Twitter’s lawsuit against him and adjourn the trial scheduled to start Oct. 17.

Eric Talley, a law professor at Columbia University, said he’s not surprised by Musk’s turnaround, especially ahead of a scheduled deposition of Musk by Twitter attorneys starting Thursday that was “not going to be pleasant.”

“On the legal merits, his case didn’t look that strong,” Talley said. “It kind of seemed like a pretty simple buyer’s remorse case.”

Attorneys for Musk did not respond to requests for comment Tuesday.

Musk has been trying to back out of the deal for several months after signing on to buy the San Francisco company in April. Shareholders have already approved the sale, and legal experts say Musk faced a huge challenge to defend against Twitter’s lawsuit, which was filed in July.

Musk claimed that Twitter under-counted the number of fake accounts on its platform, and Twitter sued when Musk announced the deal was off.

Musk’s argument largely rested on the allegation that Twitter misrepresented how it measures the magnitude of “spam bot” accounts that are useless to advertisers. Most legal experts believe he faced an uphill battle to convince Chancellor Kathaleen St. Jude McCormick, the court’s head judge, that something changed since the April merger agreement that justifies terminating the deal.

Musk’s main argument for terminating the deal – that Twitter was misrepresenting how it measured its “spam bot” problem – also didn’t appear to be going well as Twitter had been working to pick apart Musk’s attempts to get third-party data scientists to bolster his concerns.

Neither Musk nor Twitter CEO Parag Agrawal have written anything about the deal on Twitter, where many developments in the dispute have been aired. Many of Musk’s tweets in the past 24 hours have been about a divisive proposal to end Russia’s invasion of Ukraine, drawing the ire of Ukrainian President Volodymyr Zelenskyy.

Even if the deal now goes through without a hitch, it’s too soon to call a victory for Twitter, said Jasmine Enberg, an analyst with Insider Intelligence.

“The deal will solve some of the short-term uncertainty at the company, but Twitter is essentially in the same place it was in April,” she said. “There is still plenty of uncertainty around what Musk intends to do with Twitter, as well as the future of a company with a leader who has wavered in his commitment to buying it. And if we’ve learned anything from this saga, it’s that Musk is unpredictable and that it isn’t over yet.”

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Marcy Gordon in Washington contributed to this report.

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Elon Musk changes course and proposes going through with Twitter deal at original price: Sources

Elon Musk has reversed course and is again proposing to buy Twitter for $54.20 a share, according to sources familiar with the matter. A deal could happen as soon as Friday, the sources added.

Twitter shares jumped as much as 15% on Tuesday after Bloomberg first reported on the Tesla CEO’s plans to go forth with his deal to acquire the company. The stock was halted after the report.

A few weeks after Musk agreed to the deal earlier this year, valuing Twitter at $44 billion, he quickly tried to back out, officially informing the company in July of his intentions to terminate the agreement. Twitter sued Musk to force him to go through with the purchase. The two sides were scheduled to go to trial in Delaware Chancery Court on Oct. 17.

Musk alleged that Twitter was misstating the number of “bots” on its service as one of the reasons he was reneging on the deal. He and his lawyers claimed that the social media company was misleading investors by providing false numbers in corporate filings with the Securities and Exchange Commission.

Twitter countered, however, that Musk’s assertions of fraud were incorrect and were based on a misunderstanding of the way the company tallies bots and fake accounts on its platform.

Musk also alleged that Twitter failed to provide him with the necessary data related to spam and bots, which Twitter denied.

Twitter alleged that Musk was looking for a reason to back out of the deal when the company’s shares dropped alongside a broader decline in the overall market.

CNBC has learned that Musk could own Twitter within a matter of days and that all litigation would come to an end.

Meanwhile, Tesla shares dropped about $9 per share as the news of Musk’s proposal crossed, but are still up more than 2% on the day.

This is breaking news. Please check back for updates.

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Whistleblower: China, India had agents working for Twitter

WASHINGTON (AP) — Twitter’s former security chief told Congress Tuesday there was “at least one agent” from China’s intelligence service on Twitter’s payroll and that the company knowingly allowed India to add agents to the company roster as well, potentially giving those nations access to sensitive data about users.

These were some of the troubling revelations from Peiter “Mudge” Zatko, a respected cybersecurity expert and Twitter whistleblower who appeared before the Senate Judiciary Committee to lay out his allegations against the company.

Zatko told lawmakers that the social media platform is plagued by weak cyber defenses that make it vulnerable to exploitation by “ teenagers, thieves and spies” and put the privacy of its users at risk.

“I am here today because Twitter leadership is misleading the public, lawmakers, regulators and even its own board of directors,” Zatko said as he began his sworn testimony.

“They don’t know what data they have, where it lives and where it came from and so, unsurprisingly, they can’t protect it,” Zatko said. “It doesn’t matter who has keys if there are no locks.”

“Twitter leadership ignored its engineers,” he said, in part because “their executive incentives led them to prioritize profit over security.”

In a statement, Twitter said its hiring process is “independent of any foreign influence” and access to data is managed through a host of measures, including background checks, access controls, and monitoring and detection systems and processes.

One issue that didn’t come up in the hearing was the question of whether Twitter is accurately counting its active users, an important metric for its advertisers. Tesla CEO Elon Musk, who is trying to get out of a $44 billion deal to buy Twitter, has argued without evidence that many of Twitter’s roughly 238 million daily users are fake or malicious accounts, aka “spam bots.”

Even so, “that doesn’t mean that Musk won’t use Zatko’s allegation that Twitter was disinterested in removing bots to try to bolster his argument for walking away from the deal,” said Insider Intelligence analyst Jasmine Enberg.

The Delaware judge overseeing the case ruled last week that Musk can include new evidence related to Zatko’s allegations in the high-stakes trial, which is set to start Oct. 17. During the hearing, Musk tweeted a popcorn emoji, often used to suggest that one is sitting back in anticipation of unfolding drama.

Separately on Tuesday, Twitter’s shareholders voted overwhelmingly to approve the deal, according to multiple media reports. Shareholders have been voting remotely on the issue for weeks. The vote was largely a formality, particularly given Musk’s efforts to nullify the deal, although it does clear a legal hurdle to closing the sale.

Zatko’s message echoed one brought to Congress against another social media giant last year. But unlike that Facebook whistleblower, Frances Haugen, Zatko hasn’t brought troves of internal documents to back up his claims.

Zatko was the head of security for the influential platform until he was fired early this year. He filed a whistleblower complaint in July with Congress, the Justice Department, the Federal Trade Commission and the Securities and Exchange Commission. Among his most serious accusations is that Twitter violated the terms of a 2011 FTC settlement by falsely claiming that it had put stronger measures in place to protect the security and privacy of its users.

Sen. Dick Durbin, an Illinois Democrat who heads the Judiciary Committee, said Zatko has detailed flaws “that may pose a direct threat to Twitter’s hundreds of millions of users as well as to American democracy.”

“Twitter is an immensely powerful platform and can’t afford gaping vulnerabilities,” he said.

Unknown to Twitter users, there’s far more of their personal information disclosed than they — or sometimes even Twitter itself — realize, Zatko testified. He said Twitter did not address “basic systemic failures” brought forward by company engineers.

The FTC has been “a little over its head”, and far behind European counterparts, in policing the sort of privacy violations that have occurred at Twitter, Zatko said.

Zatko’s allegation that Twitter was more concerned about foreign regulators than the FTC, Enberg said, “could be a wakeup call for U.S. lawmakers,” who have been unable to pass meaningful regulation on social media companies.

Sen. Lindsey Graham, a Republican from South Carolina, said one positive result that could come out of Zatko’s findings would be bipartisan legislation to set up a tighter system of regulation of tech platforms.

“We need to up our game in this country,” he said.

Many of Zatko’s claims are uncorroborated and appear to have little documentary support. Twitter has called Zatko’s description of events “a false narrative … riddled with inconsistencies and inaccuracies” and lacking important context.

Still, Zatko came off as a convincing whistleblower who has “a lot of credibility in this space,” said Ari Lightman, professor of digital media and marketing at Carnegie Mellon University. But he said many of the problems he raised can likely be found at many other digital technology platforms

“They avoid security protocols in a sense of innovating and running really fast,” Lightman said. “We gave digital platforms so much autonomy at the beginning to grow and develop. Now we’re at a point where we’re, ‘Wait a minute … This has gotten out of hand.’

Among the assertions from Zatko that drew lawmaker attention was Twitter’s apparent negligence in dealing with governments that sought to get spies a job inside the company. Twitter’s inability to log how employees accessed user accounts made it hard for the company to detect when employees were abusing their access, Zatko said.

Zatko said he spoke with “high confidence” about a foreign agent that the government of India placed at Twitter to “understand the negotiations” between India’s ruling party and Twitter about new social media restrictions and how well those negotiations were going.

Zatko also revealed Tuesday that he was told about a week before his firing that “at least one agent” from the Chinese intelligence service MSS, or the Ministry of State Security, was “on the payroll” at Twitter.

He said he was similarly “surprised and shocked” by an exchange with current Twitter CEO Parag Agrawal about Russia — in which Twitter’s current CEO, who was chief technology officer at the time, asked if it would be possible to “punt” content moderation and surveillance to the Russian government, since Twitter doesn’t really “have the ability and tools to do things correctly.”

“And since they have elections, doesn’t that make them a democracy?” Zatko recalled Agrawal saying.

Sen. Charles Grassley, the committee’s ranking Republican, said Tuesday that Agrawal declined to testify at the hearing, citing the ongoing legal proceedings with Musk. But the hearing is “more important than Twitter’s civil litigation in Delaware,” Grassley said. Twitter declined to comment on Grassley’s remarks.

In his complaint, Zatko accused Agrawal as well as other senior executives and board members of numerous violations, including making “false and misleading statements to users and the FTC about the Twitter platform’s security, privacy and integrity.”

Zatko, 51, first gained prominence in the 1990s as a pioneer in the ethical hacking movement and later worked in senior positions at an elite Defense Department research unit and at Google. He joined Twitter in late 2020 at the urging of then-CEO Jack Dorsey.

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O’Brien reported from Providence, R.I.; Ortutay reported from Oakland, Calif.

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Follow Marcy Gordon at https://twitter.com/mgordonap



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Twitter, Zoom, Palo Alto Networks, Macy’s and more

Check out the companies making headlines in midday trading Tuesday.

Zoom Video — Zoom sank more than 14% after missing on revenue estimates for the previous quarter due to a strong dollar. The videoconferencing company also cut its forecast for the full year amid slowing revenue growth.

Twitter – Shares of the social media network fell 6% after a whistleblower at the company filed complaints with the Securities and Exchange Commission, Federal Trade Commission and Justice Department alleging “extreme, egregious deficiencies by Twitter” related to privacy, security and content moderation.

Palo Alto Networks – Shares of Palo Alto Networks jumped 11% after the company reported an earnings beat Monday, driven by strong billings up 44% in the quarter. The cybersecurity company also raised its quarterly and full-year guidance, boosted its buyback program and announced the approval of a 3-for-1 stock split.

Macy’s – Shares of the department store rose more than 4% after the retailer reported a fiscal second-quarter profit and revenue that topped analysts’ expectations. Macy’s also teased that its digital marketplace, which was announced last year, is launching in the coming weeks. However, the company cut its full-year forecast, saying it anticipates deteriorating consumer spending on discretionary items such as apparel that will lead to heavy markdowns to move items off shelves.

Dick’s Sporting Goods — Shares climbed 2% after the sporting goods retailer topped earnings and revenue estimates in its second-quarter results and also raised its full-year financial outlook.

Medtronic — Medtronic shares sank 3.4% despite a beat on revenue and earnings in the recent quarter. The medical devices maker said that revenue fell from a year ago as it grapples with supply chain constraints.

JD.com — Shares of the e-commerce company based in China rose 3.8% after the company exceeded analyst expectations on the top and bottom lines in the recent quarter. JD.com also said that annual active customer accounts rose 9.2%.

XPeng — XPeng sank 8.8% after posting a wider-than-expected loss in the previous quarter. The China-based electric vehicle company topped revenue expectations but said deliveries nearly doubled from the year-ago period.

J.M. Smucker – Shares of the food products company rose more than 3% on Tuesday after J.M. Smucker’s first-quarter adjusted earnings topped expectations at $1.67 per share. Analysts surveyed by Refinitiv had penciled in $1.27 per share. Revenues were in-line at $1.87 billion. The earnings beat came despite a hit from the Jif peanut butter recall

Grocery Outlet Holding – Shares of the discount grocery store chain shed 4% after being downgraded by Morgan Stanley to underweight from equal weight. The firm cited downside to Grocery Outlet Holding’s 2023 estimates and not as much upside to its 2022 estimates being baked in. The stock has also already surged more than 40% this year. 

Pinduoduo — The e-commerce stock jumped 6.2% amid news that it’s reportedly preparing to launch an international e-commerce platform next month targeting North America.

— CNBC’s Carmen Reinicke, Yun Li, Sarah Min, Tanaya Macheel, Jesse Pound and Michelle Fox contributed reporting.

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Coinbase, Roblox, Wendy’s and more

Check out the companies making headlines in midday trading.

Coinbase reported a 27% decline in revenues in the first quarter as usage of the platform dipped.

Chesnot | Getty Images

Coinbase – Shares of the crypto services operator jumped about 6% despite the company reporting a wider-than-expected loss late Tuesday and a decline in volumes in the most recent quarter. The rally coincided with a move higher in bitcoin after a key inflation reading showed a better-than-expected slowdown in rising prices.

Wendy’s – The restaurant chain saw its shares fall more than 2% after reporting a revenue miss. U.S. same-restaurant sales rose 2.3% — less than analysts had estimated — as consumers spent more cautiously. Wendy’s earnings in the latest quarter topped estimates, however.

Roblox – Shares of the video game platform were down 5% in midday trading after postmarket earnings Tuesday missed analyst expectations. Roblox’s quarterly loss was wider than expected, and its bookings, which include sales recognized during the quarter and deferred revenue, declined by 4% year over year.

Twitter – The social media company climbed more than 3% after Elon Musk disclosed the sale of nearly $7 billion in Tesla shares in the past few days. Investors are uncertain whether a Delaware Chancery court will force Musk to follow through on his deal to buy Twitter for $44 billion. Shares of Tesla gained more than 2.5%.

Sweetgreen — Shares dropped 5% after the salad chain lowered its full-year forecast, and second quarter revenue missed analyst estimates. Sweetgreen also said it laid off 5% of support center employees.

Trade Desk — Shares of the digital advertising firm soared 35% after it gave an upbeat forecast for the current quarter and revenue beat estimates in the quarter just ended.

Fox — The media company rose 4% even after Fox missed estimates on the top and bottom lines in the latest quarter. Earnings per share came in 1 cent below estimates.

Unity Software — The software company jumped more than 7% after Unity reported an adjusted loss of 18 cents per share, three cents better than estimates, according to Refinitiv. Unity’s revenue and guidance were lower than expected. The stock is now trading within 10% of $58.85 per share, which is the price offered by AppLovin in a nonbinding merger proposal earlier this week.

H&R Block — The tax preparation services company jumped more than 12% after it raised its dividend and authorized a new $1.25 billion buyback. H&R Block also beat top and bottom line estimates in the most recent quarter.

BuzzFeed — BuzzFeed slumped 4.3% after posting earnings. The company reported a bigger-than-expected loss per share, noting that it faces rising costs and a troublesome advertising market.

— CNBC’s Tanaya Macheel, Sarah Min, Carmen Reinicke, Jesse Pound, Michelle Fox and Yun Li contributed reporting.

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Wendy’s, Coinbase, Buzzfeed and more

Check out the companies making headlines before the bell:

Wendy’s (WEN) – Wendy’s shares fell 1% in premarket trading following a mixed quarter, which saw the restaurant chain report better-than-expected earnings while revenue fell short of Street forecasts. U.S. same-restaurant sales rose 2.3%, less than analysts had estimated, as consumers spent more cautiously.

Coinbase (COIN) – The cryptocurrency exchange operator’s shares slid 5% in the premarket after the company reported a wider-than-expected quarterly loss, with business impacted by the slide in crypto prices during the spring months. Coinbase saw volumes fall as the number of active traders declined during the quarter.

Buzzfeed (BZFD) – The digital media company reported a wider-than-expected quarterly loss amid a pressured advertising market and rising expenses. Buzzfeed fell 3.7% in premarket trading.

Twitter (TWTR) – Twitter added 3.6% in premarket action following news that Elon Musk sold nearly $7 billion in Tesla (TSLA) shares over the past few days. The move comes amid uncertainty over whether a court will force Musk to follow through on his $44 billion deal to buy Twitter. Tesla shares gained 1.3%.

Roblox (RBLX) – The videogame company’s stock tumbled 15.1% in the premarket after Roblox reported a quarterly loss that was wider than expected and bookings – a key sales metric – fell short of analyst forecasts.

Wynn Resorts (WYNN) – The resort operator reported a smaller-than-expected quarterly loss, but revenue was shy of expectations as results in Macau continue to be pressured by Covid-related shutdowns. Wynn Resorts fell 2.9% in premarket trading.

Trade Desk (TTD) – The digital advertising firm’s stock surged 16.3% in the premarket after it reported better-than-expected quarterly revenue and gave an upbeat forecast for the current quarter. The company said its performance gives it confidence that it can gain market share in any economic environment.

H&R Block (HRB) – The tax preparation firm’s stock jumped 4% in premarket action after quarterly results were better than expected, helped by a strong tax season. H&R Block also announced a 7% dividend increase and a new $1.25 billion stock buyback program.

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Elon Musk challenges Twitter CEO Parag Agrawal to a debate on bots

Centi-billionaire Elon Musk provoked Twitter and challenged the company’s CEO Parag Agrawal to a “public debate” about fake accounts and spam in the midst of a contentious legal battle over a $44 billion acquisition.

Musk filed a bid with the Securities and Exchange to acquire Twitter back in April this year. After the companies agreed to move ahead with a take-private deal, Musk said he was terminating his acquisition, and accused Twitter of presenting false numbers, including in its SEC filings, pertaining to the amount of monetizable daily active users, and the number of spam and bot accounts on the social network.

Twitter then sued Musk in a Delaware chancery court to ensure the deal would go through as promised, and Musk filed counterclaims and a countersuit there on July 29.

In a series of tweets that Musk began posting just before 1 a.m. on Saturday, Aug. 6, Musk interacted with a fan who had summarized his accusations about Twitter including that it was stonewalling him and giving him, “outdated data,” and “a fake data set” when he asked the company for details about how it tabulates mDAU, and estimates for spam and bot accounts.

The Tesla and SpaceX CEO wrote, “Good summary of the problem. If Twitter simply provides their method of sampling 100 accounts and how they’re confirmed to be real, the deal should proceed on original terms. However, if it turns out that their SEC filings are materially false, then it should not.”

By just after 9 a.m. Saturday morning, Musk started a Twitter poll asking his followers to vote on whether “[l]ess than 5% of Twitter daily users are fake/spam.” Respondents to the informal poll could choose one of Musk’s provided answers which read either “Yes” followed by three robot emoji, or “Lmaooo no.” (The slang abbreviation “lmao” stands for “laughing my a– off.)

Musk also wrote Saturday morning: “I hereby challenge @paraga to a public debate about the Twitter bot percentage. Let him prove to the public that Twitter has <5% fake or spam daily users!"

A source close to the company says a debate is not going to happen outside of a pending trial.

Attorneys for Musk did not respond to requests to comment on Saturday, and an attorney for Twitter declined to comment on Musk’s Saturday tweets.

Twitter’s attorneys have argued in court filings that Musk gave the company just twenty-four hours to accept his offer before he would present it directly to Twitter shareholders, and waived due diligence including a chance to seek more information on false or spam accounts.

They wrote in court filings, “Musk’s repeated mischaracterizations of the merger agreement cannot change its plain words.”

At an annual shareholder meeting for Tesla on Aug. 4, Musk was asked to speak about Twitter during a question-and-answer session that followed a proxy vote.

He said, drawing laughter from the audience in attendance, “I obviously have to be a little careful what I say about Twitter because there’s this lawsuit and stuff.” He confirmed that the only two publicly traded securities he owns are Tesla and Twitter.

And then he spoke as if he still wants to become the owner of the social networking company, a stark contrast to arguments made by Musk via his attorneys in legal filings in Delaware in which Musk argues he should not have to go through with the deal.

At the Tesla 2022 shareholders’ meeting, Musk said: “I think in the case of Twitter since I use it a lot, shoot myself in the foot a lot, you know, dig my grave, etc. I think it’s — I do understand the product quite well, so I think I’ve got a good sense of where to point the engineering team at Twitter to make it radically better.”

He added that Twitter would “help accelerate” a “pretty grand vision” he had to build a business he’d been thinking about since his earliest years as a tech entrepreneur, X.com or X Corporation.

“Obviously that could be started from scratch,” he said, “but I think Twitter would help accelerate that by three to five years. So it’s kind of like something I’ve thought would be quite useful for a long time. I know what to do. Don’t have to have Twitter for that but, like I said, it’s probably at least a three-year accelerant and I think it’s something that will be very useful to the world.”

Musk didn’t go into any further details at that meeting. However, he reportedly said during a town hall meeting with Twitter employees in June this year that he wanted to grow Twitter’s user base to a billion people and saw Twitter as a platform that could evolve into an app like China’s WeChat, a “super app,” that incorporates everything from messaging, video and social media, to mobile and point-of-sales payments, with a robust app ecosystem.

Unless they reach a settlement first, Twitter and Musk are headed for a five-day trial in Delaware that starts on Oct. 17. The judge ruling on the case is Chancellor Kathaleen St. J. McCormick.



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Elon Musk’s response to Twitter lawsuit to be made public by Friday

DOVER, Del. — Elon Musk’s answer to Twitter’s lawsuit over his attempt to back out of a $44 billion deal to buy the social media company will be made public by Friday evening at the latest, a judge ruled Wednesday.

Attorneys for Musk wanted to file a public version of their answer and counterclaims in Delaware court Wednesday. But Twitter
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attorneys complained that they needed more time to review and potentially redact Musk’s sealed filing, saying it refers “extensively” to internal Twitter information and data given to Musk.

Chancellor Kathaleen St. Jude McCormick held a quick teleconference Wednesday before agreeing with Twitter, directing that the public filing be docketed by 5 p.m. Friday. It could be filed earlier depending on when Twitter attorneys complete their review.

Twitter attorneys argued that court rules require that five business days lapse before a public version of Musk’s filing is docketed.

“Few cases attract as much public interest as this one, and Twitter is mindful of this court’s commitment to ensuring maximum public access to its proceedings,” Twitter attorney Kevin Shannon wrote. “Twitter has no interest in proposing any more redactions to defendants’ responsive pleading than are necessary.”

Musk attorney Edward Micheletti argued that Twitter’s lawyers were misinterpreting the court rules. Musk attorneys also say there is no confidential information in Musk’s filing that should be withheld from the public.

“Twitter should not be permitted to continue burying the side of the story it does not want publicly disclosed,” Micheletti wrote.

Musk, the world’s richest man, agreed in April to buy Twitter and take it private, offering $54.20 a share and vowing to loosen the company’s policing of content and to root out fake accounts.

Twitter shares closed Wednesday at $41, well off a 52-week high of $69.81.

Musk, indicated in July that he wanted to back away from the deal, prompting Twitter to file a lawsuit to hold him to the “seller-friendly” agreement.

Musk says Twitter has failed to provide him enough information about the number of fake accounts on its service. Twitter argues that Musk, CEO of electric car maker and solar energy company Tesla Inc.
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+2.27%,
is deliberately trying to tank the deal because market conditions have deteriorated and the acquisition no longer serves his interests.

Either Musk or Twitter would be entitled to a $1 billion breakup fee if the other party is found responsible for the agreement failing. Twitter wants more, however, and is seeking a court order of “specific performance” directing Musk to follow through with the deal.

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