Twitter (NYSE:TWTR) stock shareholders have an important upcoming decision to weigh on pertaining to Elon Musk’s acquisition. Reportedly, Twitter will hold a shareholder vote in early August to determine the fate of the pending $44 billion deal.
On Wednesday, Twitter leadership told employees it’s working to complete its sale of the company to infamous Tesla (NASDAQ:TSLA) CEO Elon Musk. As part of the message, executives revealed plans to host a shareholder vote on the acquisition some time in late July or early August.
This announcement comes just days after Musk, via his lawyers, threatened to walk away from the deal. Specifically, the CEO claims Twitter has failed to offer data on the number of spam accounts on the platform. Musk’s lawyers sent a letter to Chief Legal Officer Vijaya Gadde on Monday, accusing Twitter of “being in ‘material breach’ of its deal obligations.”
Elon Musk has voiced repeated concerns — frequently via tweets — that Twitter has a high number of fake accounts on its platform, likely inflating user numbers.
TWTR Stock Slumps After Offering Musk ‘Firehose’ of Data
On Wednesday, Twitter responded to Musk’s complaints in kind. The company offered Musk its entire “firehose” of data. That is, an up-to-date log of tweets, with related metadata, for the website. The data itself will require data scientists to filter what constitutes bot activity and determine the number of actual “monetizable” users.
In some ways, this is a strategically genius move from Twitter. Many believe Musk’s recent line of complaints is a thinly veiled effort to renege on the deal. By offering the CEO nearly all its data, Twitter voids much of his criticism. Should Musk get cold feet, he can no longer fall back on a lack of user data as an excuse.
Today, TWTR stock and TSLA stock closed down by 2% and nearly 1%, respectively. Some suspect Musk may be getting cold feet due to general market fears. That isn’t exactly unmerited given rising interest rates and sky-high inflation. Recently, the CEO tweeted he has a “super bad feeling” about the economy.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.