August 18, 2022

Within the response to Twitter’s criticism, which incorporates counterclaims in opposition to the corporate, Musk’s staff tries to refute the corporate’s accusations that the Tesla CEO is unfairly making an attempt to get out of the deal. His staff repeats accusations that Twitter has misrepresented the variety of pretend accounts and spam bots on its platform, a central accusation Musk has made to justify rescinding the acquisition deal after initially citing a need to “defeat spam bots” as a cause for purchasing the corporate.

Musk’s response, which was launched publicly on Friday, states that the billionaire’s staff carried out an evaluation of faux and spam accounts on the platform utilizing information offered by Twitter’s “hearth hose” of tweets and a public device known as Botometer. created by researchers at Indiana College. . He didn’t elaborate additional on the method of that analysis, including that his evaluation was “constrained” by Twitter’s lack of time and knowledge.

Based mostly on that evaluation, Musk alleges that in the course of the first week of July, spam bots accounted for 33% of seen accounts on the platform and about 10% of Twitter’s monetizable day by day lively customers, or mDAUs. (Twitter, for its half, has persistently reported that spam and faux bot accounts account for lower than 5% of its mDAU.)

In its response, Twitter disagrees with Musk’s evaluation of spam bots, saying that the “hearth hose” of knowledge he used “displays many Twitter accounts that aren’t included in mDAU” and that the Botometer device you used depends on a special course of than the corporate to find out if an account could also be a bot. He added that Botometer “earlier this 12 months designed Musk himself as very prone to be a bot.”

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The forwards and backwards between Twitter and Musk affords a preview of the arguments both sides will current when the case goes to trial, assuming they don’t settle first. A five-day trial is scheduled to start on October 17, after Twitter pushed to hurry up the method.

Musk moved final month to terminate his deal to purchase Twitter, accusing the corporate of breaching the deal by making deceptive claims concerning the variety of bot accounts on its platform and withholding info he says might assist him assess the issue. . Days later, Twitter filed a lawsuit in opposition to the billionaire, claiming he had violated the settlement and asking a court docket to implement it.

Along with doubling down on issues about bot accounts, Musk’s responses additionally criticized Twitter’s use of monetizable day by day lively customers, a metric that Twitter publicly experiences to advertisers and shareholders to symbolize its development.

Musk claims that his evaluations present that solely a small portion of customers Twitter considers mDAU to truly generate vital income for the corporate by viewing and interacting with advertisements, claiming that the measure is definitely not such indicator of development potential. of future and long-term revenue. efficiency as implied by public Twitter displays.

“Twitter additionally doesn’t publish the methodology it follows to find out its mDAU rely, or the way it excludes non-monetizable accounts from that metric,” Musk’s response states. “Due to this fact, this can be very troublesome for any third celebration to completely recreate Twitter’s mDAU calculations.”

Musk’s response alleges that Twitter’s management is incentivized to report “excessive mDAU figures within the curiosity of Stoke traders” and since its govt compensation construction relies partially on mDAU.

Of their response, Musk’s staff explains that the billionaire is worried concerning the spam bot problem as a result of “transitioning customers who don’t generate any income to extra lively customers…isn’t a simple process.” Musk’s staff provides: “An organization targeted on aggregating these lively customers would spend substantial assets making an attempt to enhance Twitter to maximise engagement, for instance by successfully focusing on spam or pretend accounts.”

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Twitter stated in its response to Musk’s counterclaims that its mDAU rely was by no means supposed to indicate what number of customers generate vital income by interacting with advertisements, however as a substitute reveals the variety of precise customers who might be monetized by exhibiting them advertisements. He additionally famous that Musk’s mDAU-related claims weren’t included in his preliminary termination submitting and “are a newly invented litigation place.”

The corporate additionally goes on to state that the bot problem isn’t, and has by no means been, associated to the completion of the acquisition deal. “Musk has obtained huge quantities of data from Twitter for months and has been unable to discover a legitimate excuse to terminate the contract,” Twitter’s response reads.

In a letter to Twitter staff that was included in Friday’s regulatory submitting, Twitter Basic Counsel Sean Edgett stated that whereas Twitter had the chance to request redaction of Musk’s response, it selected to not. (Twitter had beforehand despatched a letter to the decide overseeing the case asking him to make sure that Musk’s staff didn’t file the general public response early so that they had sufficient time to evaluation it for doable redactions.)

“We selected to not redact any disclosures: We absolutely help our filings with the SEC, the methodologies we use to calculate mDAU, and our statements concerning the proportion of spam accounts on our platform,” Edgett stated within the letter.