Elon Musk Violates Twitter's NDA, Says the Company: What's Next for the Acquisition Deal?

Tesla CEO Elon Musk tweeted on Saturday that Twitter has accused him of violating the nondisclosure agreement (NDA) with the bird app, which is set for him to take over once his $44 billion deal with the social media company is sealed.

"Twitter legal just called to complain that I violated their NDA by revealing the bot check sample size is 100," Musk said in a tweet last May 15

The billionaire's tweet was a response to another tweet from him on Friday, when he revealed Twitter's plans to compute the amount of spam or fake accounts existing on the social network.

He stated that his team would conduct "a random sample of 100 followers" on Twitter to determine the bots. When a user asked Musk to detail the "process of filtering bot accounts," he said that he "picked 100 as the sample size number," claiming that this is what Twitter uses to compute "<5% fake/spam/duplicate."

However, Musk also noted during the early hours of Sunday that he is anticipating any analysis that shows that the social media app consists of 5% of fake accounts. He even tweeted that there is "some chance it might be over 90% of daily active users."

But this revelation of sample size is the reason why Musk is now treading in hot water, as he also said on Saturday that disclosing this information indicates that he had "violated" his NDA, according to Twitter's legal team.

But Musk continued to detail several information about the company, including his recent tweets on Twitter's algorithm, suggesting to users that they are "being manipulated" and should be wary of "potential bugs" in its code.

Deal on Hold: What's Next for Twitter?

Last month, Musk announced that he had purchased Twitter. But the deal is now "on hold" and could take several months for finalization in the midst of a reported Federal Trade Commission probe, and shareholders will still accept the proposal of buying their shares at $54.20.

However, according to an NBC News report, Musk has agreed to buy all the shares of Twitter, but it is still incomplete.

The stocks of Twitter have also faced a drastic decline in the past weeks, and the total value of Twitter has effectively dipped.

Last May 13, the company's shares went down to around $35 billion, while the stock in pre-market trading decreased after Musk tweeted about the rising number of fake accounts on the bird app.

However, it is still uncertain if the stock decline or the number of fake accounts led to the billionaire delaying his billion-acquisition deal.

He did, however, share that one of his reasons for buying the app is to prevent fake accounts from taking over the free-speech platform.

For now, updates on the deal will still be on the "lookout."

The billionaire had recently drawn attention when he said that he would lift former President Trump's permanent ban from Twitter when his acquisition is finally made.

This article is owned by Tech Times

Written by Joaquin Victor Tacla