The legitimacy of the claims are in dispute, but the bigger question is, what does this mean for Twitter’s ongoing dispute with Elon Musk, whose $44 billion takeover of the social media company is now part of an active court case.
“If what Zatko alleges is true, Twitter has violated its users’ trust and deceived the Federal Trade Commission and its directors,” says Christopher Bouzy of Bot Sentinel, whose access to Twitter data. As for the timing of that warning, which would restrict Bouzy from collecting data about deactivated and suspended accounts that had not been an issue for the previous four years, “I do not think it's a coincidence,” Bouzy says.
The circumstances around the revelations play into Musk’s hands, believes Pritchard. “That makes it easier for him to argue that it is a material adverse change rather than a topic he waived when he waived due diligence,” he says. “As always, it is all about negotiating leverage, and this gives Musk a bit more leverage.”
Paul Fisher, who teaches negotiation at Oxford University’s Saïd Business School, also isn’t a lawyer. But he thinks the takeover is now a done deal—and not in the way Twitter wants. “I think it could well give Musk the way out he wants,” he says. “In any negotiation, particularly when it concerns the sale or purchase of an asset, transparency and getting all material information that might affect price onto the table is essential.
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