Image: Reuters Berita 24 English - A court filing shows that billionaire entrepreneur Elon Musk is asking Twitter Inc. co-founder Jack Dor...
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| Image: Reuters |
Berita 24 English - A court filing shows that billionaire entrepreneur Elon Musk is asking Twitter Inc. co-founder Jack Dorsey for documents as he fights in court to get out of his $44 billion deal to buy the social media company. Musk is the CEO of Tesla and SpaceX.
A copy of the subpoena says that Dorsey was asked for documents and communications about Musk's agreement to buy the company in April and about spam accounts on the platform. Dorsey quit as Twitter's CEO in November and left the board in May.
Dorsey, who is the CEO of a company that processes payments called Block Inc, did not respond right away when asked for a comment. Dorsey helped start Block, which changed its name from Square Inc. to Block last year.
Musk is the richest person in the world because he owns a part of Tesla Inc. In July, he told Twitter that he was ending the deal to buy the company for $54.20 per share because he thought Twitter had broken the deal. Since then, both Twitter and Musk have filed lawsuits against each other. Twitter asked a judge on the Delaware Court of Chancery to order Musk to finish the deal. On Oct. 17, a five-day trial will begin.
The subpoena asked for documents and emails about how Twitter uses mDAU, which is a way to measure how often people use its platform. Musk says the company cheated him by not putting the number of fake accounts in its regulatory filings, which he used to figure out how much the company was worth.
Twitter has said that Musk's claims about spam are false.
Musk also wanted documents and emails about other ways the company has thought of measuring active users, as well as information about how mDAU is used in executive pay and annual goals.
Twitter didn't want to say anything.
Dorsey had agreed to Musk's offer to buy Twitter because he and Musk agreed that Twitter's algorithm needed to be more clear and that users should have more control over what they see.
Dorsey has also said on Twitter that he thinks the way Twitter makes money from ads is holding it back. Musk has said that Twitter should rely more on subscription fees and services like letting users send money to each other.
In March, Musk and Dorsey talked about Musk joining the Twitter board. This was before Musk said he had bought a 9.1% stake in Twitter. Musk agreed to be on the board, but before his term started, he changed his mind and made an offer to buy the company.
Late on Monday, Twitter stock was down 2.5% to $42.89.
