Stephen Diamond spoke with KTVU news about Elon Musk possibly walking away from the deal to buy Twitter, due to a dispute with the company over the number fake accounts. Musk’s attorneys accused Twitter of withholding data from Musk, as to how many of the 229 million Twitter accounts are fake or so-called bots.
“He appears to be using this as leverage in order to renegotiate the deal,” said Steve Diamond, a corporate law expert and associate professor at Santa Clara University School of Law.
“It’s not entirely clear that they do have a right to more information about this,” said Diamond, adding that Musk agreed to pay $54.20 a share without a close analysis of the data before signing the deal.
“I think the board is well within its rights under the agreement to just say no, you agreed to $54.20, you had your chance to kick the tires, you only kicked them once, not twice, and you now need to pay and close on the deal,” said Diamond.
