Twitter jumps after social media company reportedly plans to give Elon Musk treasure trove of data to disprove bot theory

  • Twitter stock jumped 3% on Wednesday after a report said the company would give Elon Musk access to a wealth of data.
  • The ‘firehose’ of data provided to Musk could refute the billionaire’s theory that around 20% of Twitter accounts are robots.
  • Investors see development as Twitter nears completion of Musk’s $44 billion takeover.

Twitter stock jumped as much as 3% on Wednesday, erasing early morning losses after the Washington Post reported the social media company planned to give Elon Musk a treasure trove of data.

Twitter will offer Musk access to a “firehose” of data that should satisfy his demand to investigate the proportion of the social media platform’s accounts that are bots before finalizing its $44 billion takeover. Twitter previously pegged that number at around 5%, but Musk thinks the real number is around 20%.

The board will allow Musk access to a massive data stream consisting of more than 500 million daily tweets, according to the report. The handover of the data could take place as early as this week, and investors see it as a sign that Twitter is getting closer to closing the acquisition deal.

Twitter already offers the data feed to around two dozen companies that pay for access, suggesting the company can be confident that Musk won’t find anything that contradicts its own findings about Twitter’s number of accounts. spam.

The decision reported by Twitter comes just two days after Musk sent a letter to the company accusing Twitter of violating their merger agreement by “actively resisting” requests for information about spam and fake accounts. Some argue that Musk put himself in this scenario by agreeing to waive his right to due diligence when buying the company.

Last month, Musk said he was suspending the deal as he managed to determine how many Twitter accounts were real and how many were fake. But Musk’s ‘pending’ tweet also came as the widest stock Exchange fell, which means Musk probably could have bought Twitter at a lower price had he waited longer. Additionally, Musk is committing more than $30 billion of his own wealth to the Twitter deal, much of it tied to Tesla shares.

Whether Tesla Stock continues to decline, as it has over the past month, this could put additional pressure on Musk’s financial flexibility in terms of getting the deal done.

Markets Insider

Cathy W. Howerton