Musk revealed some details of the case and explained why he decided to put the deal on hold. The case file states that the reason for the refusal is Twitter’s attempt to hide the real number of non-existent “users”, fake and spam accounts, as well as the distortion of key business metrics.
When Musk intended to buy the social network, he relied on objective and truthful data about both the audience and business affairs. This data was submitted to the US Securities and Exchange Commission – Musk hoped for their accuracy.
According to his lawsuit, in fact, all the information turned out to be far from the truth. This is done to mislead investors. The entrepreneur noted that Twitter is “desperately” trying to prevent him from getting objective information about “fraudulent activities” committed by the leadership of the social network.
“First, Twitter miscalculated the number of fake and spam accounts as part of a scheme to mislead investors about the company’s forecasts by focusing on hundreds of millions of monetizable daily active users (mDAUs). Second, while Twitter has aggressively pushed mDAU data as a “key metric” for revenue growth, it’s not as closely related to social network revenue as Twitter wants to believe.