Jamie Dimon calls on Elon Musk to ‘clean up’ Twitter

JPMorgan Chase CEO Jamie Dimon has backed Elon Musk’s plan to take down spam and fake Twitter accounts if Tesla’s chief executive completes the $44 billion purchase of the social media giant.

“I hope Musk cleans up Twitter,” Dimon told CNBC in an interview Tuesday at the JPM Techstars conference in London.

Musk has reached an agreement for acquire Twitter at $54.20 per share in April after acquiring a 9.2% stake in the social media giant. At the time, the billionaire said he wanted to improve Twitter by adding new features to the product, opening up its algorithm, defeating spambots and authenticating all humans.

Twitter claims that spam and fake accounts account for less than 5% of total monetizable daily active users.

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“Why can’t Twitter know who you are when you board, so they can weed out all these people in the public square who are bots and emails and stuff like that?” Dimon asked.

“Why can’t they give you a choice of algorithms? As opposed to one that just gives you jazz,” he added.

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In July, Musk informed Twitter that he was intention to terminate the agreement after claiming that the company had breached its obligations by misrepresenting the number of spam and fake accounts on the platform.

In response, Twitter filed a lawsuit against Musk, accusing him of refusing to honor his obligations under the agreement because “the agreement he signed no longer serves his personal interests”. Musk then filed a countersuit, which was modified last month to include allegations from whistleblower and former Twitter security chief Peiter “Mudge” Zatko.

The two parties were to face each other from October 17 before the Court of Chancery of Delaware. However, Musk has since backtracked and said he intended to enter into the original terms of the deal pending the receipt of the $12.5 billion debt financing from the deal and provided that the Delaware Court of Chancery stays Twitter’s lawsuit against him and adjourns the upcoming trial.

Last week the court interrupted the October 17 trial, giving Musk until October 28 to close the deal with Twitter. If he is unable to close the deal, his trial with Twitter will take place in November. In September, Musk’s deal was approved by Twitter shareholders.

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JPMorgan is notably absent from the list of banks that have pledged to provide debt financing for Musk’s Twitter deal. Lenders include Morgan Stanley, Bank of America and Barclays.

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In November 2021, JPMorgan sued Tesla for $162.2 million, accusing the electric vehicle company of “flagrantly” violating a 2014 contract relating to warrants sold to the bank. The lawsuit focused on a dispute over how JPMorgan revalued its Tesla warrants following Musk’s now infamous 2018 tweet in which he said he had funds secured to take Tesla 420 private. $ per share.

Tesla filed a countersuit against the bank, accusing the company of “bad faith and greed” for demanding $162.2 million after changing the terms of the warrants it received. The company claimed JPMorgan “gave itself a pure windfall” after receiving a “multi-billion dollar payout” from Tesla’s soaring stock price.

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Despite the dispute between the two companies, Dimon called Musk on Tuesday “very smart.”

Reuters contributed to this report

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