Elon Musk's condition for Twitter purchase ‘negotiating ploy': Former SEC chair
Harvey Pitt argues Musk accepted Twitter deal without doing 'initial due diligence'
Elon Musk demanding clarity on fake Twitter accounts ‘negotiating ploy': Former SEC chair
Former SEC Chairman Harvey Pitt weighs in on Elon Musk's condition for his Twitter purchase.
Former SEC Chairman Harvey Pitt, who is also the CEO of the global strategic business consulting firm, Kalorama Partners, LLC, argued on Wednesday that Elon Musk's condition for his Twitter purchase is a "negotiating ploy."
Pitt made the argument on "Mornings with Maria," adding that the Tesla CEO accepted the Twitter deal without doing any "initial due diligence."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | NO DATA AVAILABLE | - | - | - |
Tesla CEO Elon Musk set a key condition for his pending $44 billion purchase of Twitter to go through: transparency on the number of fake or spam accounts.
Musk tweeted, "20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher. My offer was based on Twitter’s SEC filings being accurate."
Musk went on to write that "Twitter’s CEO publicly refused to show proof of <5%. This deal cannot move forward until he does."
Musk says clarity on fake Twitter accounts needed for purchase to move forward
NetChoice Vice President Carl Szabo, an adjunct professor of Internet law at the George Mason Antonin Scalia Law School, weighs in, arguing that the demand is a 'negotiating tactic' by Elon Musk.
Musk had responded to an article from Teslarati, which claimed that he may be seeking a better deal to acquire Twitter.
ELON MUSK SLAMS BIDEN: ‘THE REAL PRESIDENT IS WHOEVER CONTROLS THE TELEPROMPTER’
Teslarati noted that if Musk backs out of the deal, he will be required to pay Twitter a $1 billion termination fee and could be subjected to additional litigation.
Former SEC Chairman Harvey Pitt argues that Elon Musk's condition for his Twitter purchase is a "negotiating ploy." ( Getty Images / Getty Images)
Pitt noted on Wednesday that "Twitter said that they estimate that the amount is not more than 5%, but they also stated that it could be higher."
He then argued that the Tesla CEO "knew all of this going into the transaction."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"He accepted a deal in which he did no initial due diligence and agreed to pay a $1 billion breakup fee, so I think this is all a negotiating ploy by Mr. Musk," Pitt continued.
Musk said last week that his acquisition of Twitter is on hold pending details about spam and fake accounts on the platform, yet he added that he is "still committed" to the purchase of the social media company.
Elon Musk accepted Twitter deal without doing 'initial due diligence': Former SEC chair
Former SEC Chairman Harvey Pitt argues that Elon Musk demanding clarity on fake accounts in order to proceed with his Twitter purchase is a ‘negotiating ploy.’
Host Maria Bartiromo asked Pitt if Musk’s condition is "a way for him to walk away and not pay the $1 billion breakup fee?"
"I don’t think so unless it could possibly be shown that Twitter knew the number was much, much, much higher, and that it deliberately disclosed a lower number to mislead," he responded.
"I think, even if that happened, however, if Mr. Musk walks away from this transaction, he will be sued left and right and become a professional defendant for the next five to ten years as a result," he continued.
CLICK HERE TO READ MORE ON FOX BUSINESS
FOX Business’ Tyler O’Neil contributed to this report.