Elon Musk, a potential buyer for Twitter, recently announced that he was ending his merger agreement with this social media company.
The notice continues, “While Section6.4 of the Merger Agreement obliges Twitter to provide Mr. Musk’s advisors with all data and information ‘for any reasonable purpose related to consummation of this transaction,’ Twitter has not fulfilled its contractual obligations.” The letter accuses Twitter of not providing information or refusing to give it, as well as claiming that they are in compliance but actually giving Mr. Musk unusable or incomplete information.
This notice makes the strong accusation that many of Twitter’s public disclosures about its mDAUs (monetizable daily active user) are false or misleading.
Musk’s offer was a joke, meant to force Twitter to reveal its overvaluation and false accounting. Did it give Musk credibility to criticize Twitter’s business and value? Or was it a legitimate offer to force Twitter into hiding its allegedly cooked books.