New Delhi, Aug 6 : Twitter has filed an elaborate reply to Tesla CEO Elon Musk’s countersuit against the micro-blogging platform declaring that his assertions are “factually incorrect, legally insufficient and commercially unimportant”.According Musk Musk, he was hoodwinked by Twitter to sign an agreement for a merger worth $44 billion.
“That tale is just as absurd and averse to reality as it appears.It’s just the storythat was invented in an attempt to avoid the merger agreement that Musk was no longer interested in when the market — and with it, his vast personal wealth diminished in value.” Twitter said in its legal response filed in the Delaware Court of Chancery in the US.
Musk’s attorneys filed 90 pages of counterclaims in the court and Twitter responded to them paragraph-by-paragraph.
“The counterclaims are an invented story that is not supported by evidence and the common sense.Musk creates representations Twitter did not make and then tries to use only the vast private data Twitter gave him to create the possibility of a breach of these alleged assertions.” the Parag Agrawal-run company claimed.
However, Musk simultaneously and incoherently claims that Twitter violated the merger agreement when it refused to answer his requests for information, according to Twitter.
Musk, in his countersuit stated that his lawsuit is the result of Twitter’s false representations regarding the status of the company, as well as the “key metrics” Twitter uses to evaluate the amount of users using its platform.
“They contain numerous, significant mistakes or omissions that distorted Twitter’s worth and led the Musk Parties to accept the acquisition at a price that was too high,” claimed the countersuit.
In its public disclosures, Twitter claims to have around 238 million daily monetisable active users (mDAU) who use the platform.It also informs its investors that the base metric is a gauge for its capacity to generate revenue, and is the “best method of measuring (Twitter’s) performance”.
When the Musk legal team started to “peel the onion of fake and fake accounts” Two things became apparent.
“First, Twitter was miscounting the number of fake and spam accounts that were on its platform in the course of the scheme designed to deceive investors on the company’s future through focusing its attention on its alleged hundreds of millions of mDAU.” Read Musk’s response.
Second, although Twitter has repeatedly promoted the mDAU as an “key measurement” to increase revenue, “mDAU is not as closely linked to revenue growth as Twitter has led the public to believe”.
Twitter denied his claim by saying that the time that Musk offered to purchase Twitter, he did not request — and Twitter did not offerany representations about the amount of fake or fake accounts.
“The merger agreement is not one single mention of fake or spam accounts.
Also, neither did Musk solicit Twitter for information in order to verify the number of fake or spam accounts prior to he signed the merger contract,” tweeted Twitter.
Musk also criticized Twitter’s methodology to estimate the percentage of fake or spam accounts in monetizable daily active users as untrue because Twitter’s estimates of quarterly usage are based upon daily samples of 100 mDAU.
They are combined for an overall sample of roughly 9,000 mDAU per quarter.
“But claiming that an estimate is insufficient based solely on the size of the sample in relation to the size of the population is an “elementary statistical error,” said Twitter.
na/
