Elon Musk questions why SEC not investigating Twitter spam data

PARIS, FRANCE - APRIL 26: In this photo illustration, the Elon Musk’s Twitter account is displayed on the screen of an iPhone on April 26, 2022 in Paris, France. The U.S. multi-billionaire Elon Musk bought the social network Twitter on Monday April 25 for the sum of 44 billion dollars after two weeks of arm wrestling with the company's board of directors. (Photo illustration by Chesnot/Getty Images) Photographer: Chesnot/Getty Images Europe

The world’s richest person Elon Musk has taken his concern about Twitter Inc. to the social media site again.

Responding to a thread initiated by another user, Musk said the deal to buy the company “should proceed on original terms” if Twitter would provide their method for sampling accounts and confirm them to be genuine. “However, if it turns out that their SEC filings are materially false, then it should not,” he also said.

Musk questioned the US Securities and Exchange Commission for not investigating Twitter over its account data and also challenged Twitter Chief Executive Officer Parag Agrawal to a public debate over the number of so-called bots on the platform.

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.

— Elon Musk (@elonmusk) August 6, 2022

Twitter is currently suing Musk over the canceled $44 billion buyout. Musk has argued that Twitter checks only 100 accounts a day when trying to calculate the number of spam bots on the service.

Musk has accused Twitter of misrepresenting the size of its user base to distort its value and cited the issue of fake accounts as a main reason for abandoning his offer to buy the company. Twitter responded by saying that the idea that Musk, backed by a team of lawyers and financial advisers, was “hoodwinked” into signing the purchase agreement was “as implausible and contrary to fact as it sounds.”

Musk’s arguments for abandoning the deal were revealed in counterclaims filed under seal in a Delaware court last week. Musk is asking the judge to declare Twitter in breach of contract.

Musk originally agreed to pay $54.2 per Twitter share. The company’s stock has plunged along with other technology stocks since then and now trades at $42.52 a share.