Twitter decided to make a move to save the acquisition deal with Tesla and SpaceX CEO, Elon Musk. This is after Musk threatened to walk away from his offer to buy the microblogging site.
Reportedly, Twitter has offered to deliver a huge mass of data linked to the platform.
Musk Threatens to Walk Away from Twitter's Acquisition Deal
Earlier this week, Musk threatened to end his bid to buy Twitter. Through his lawyer, Musk expressed that unless the microblogging site met his demands to release data on the number of fake and spam accounts in the platform, he will not proceed with the acquisition.
It can be recalled that in April, Musk bid $44 billion for Twitter. However, the Tesla CEO later raise doubts on Twitter's long-held declaration that the fake accounts are comprised only of 5% of its 229 million users.
According to Musk, the figures may be a lot higher. If that is the case then the advertisers could potentially walk away from the service. Advertisers could also demand lower rates.
If this happened, this could have an impact on Twitter's revenue. Musk is left thinking if the bid that he had for the company is higher than he should give.
Twitter did not immediately respond to Musk's demand for data on fake and spam accounts. However, with the Tesla CEO now threatening to walk away from the deal, the company has reportedly offer access to Twitter's "firehose." This is based on the report of Washington Post, as cited by Digital Trends.
The firehose data "comprises all of the hundreds of millions of tweets that land on the service daily," as per the Digital Trends report. Details on the users' devices and information on the associated accounts are also part of the firehose data.
Read Also: Elon Musk Puts Twitter's $44 Billion Deal 'On Hold' Following Pending Details on Fake Accounts
Twitter's Firehose Data is Available at a Price
Twitter's firehose data is already made available by the microblogging site, but it comes at a price. Currently, around 24 companies pay for the access of the data, as suggested by the Post. They use it mainly for research and marketing.
According to the Digital Trends, the Post stated in its report that Musk "waived a right to look deeply at Twitter's finances and internal workings," when he inked the deal two months ago.
Furthermore, terms of the agreement stated that unless Musk can demonstrate that Twitter misled him in some ways, he has to proceed with the takeover.
There are skeptics who say that Musk have gotten cold feet. They say that the CEO is only using the fake accounts issue to get out of the deal. However, he has insisted that he still wants to acquire the company. But first, Twitter must provide him the accurate stats on the number of fake or spam accounts.
Currently, there is no clear information yet whether Twitter's reported offer to deliver its firehose data will be enough for Musk and his team to proceed with the acquisition deal. Data analysist will first need to study the data to identify the number of fake or spam accounts.
According to Digital Trends, "Musk then has three choices if they're able to successfully categorize the different types of accounts on the service: to walk away, to lower the value of his bid, or to proceed with the current offer."
Related Article: Did Elon Musk Mislead Investors? Twitter Shareholder Sues Musk Delaying Disclosure of Twitter Acquisition
