Elon Musk suspended Twitter deal over fake account details
Elon Musk says a $44billion (£35billion) deal to buy Twitter is pending after asking about the number of fake or spam accounts on the social media platform.
I say I am waiting for information “we support the calculation we say that spam/fake accounts indeed represent less than 5% of users”.
For some time, Mr. Musk has not spoken in favor of cleaning up spam accounts.
However, analysts are speculating that they are in a position to try to renegotiate the price or even walk away from the takeover.
Mr Musk add later I say I’m “still determined to buy Twitter,” but these revelations are fueling doubts on Wall Street and driving Twitter’s stock price down.
Shares drop 10% for morning trade for New York. Even before Musk’s comments, the shares are sold for less than $54.40 in the offer, somewhere we are signs that the market is not convinced that I will complete the buyback.
Under the terms of the agreement, if either Twitter or Mr. Musk walks away, they must pay the other side a $1 billion termination fee.
However, the company says that in determining the number of spam accounts, “they apply significant judgment, so our estimate of fake accounts or spam accounts does not accurately represent the true number of such accounts.”
“The actual number of fake or spam accounts is higher than we estimate. We are continually looking to improve our ability to estimate the total number of spam accounts,” dem tok.
Mr Musk, who is the richest woman in the world according to Forbes magazine, is now looking at that figure.
For a long time, Twitter no longer has a problem with automated fake accounts where users use the content of posts.
Mr Musk is not calling for “defeating spambots” on Twitter as well as many other changes, including the return of some banned accounts such as that of former US President Donald Trump.
Dan Ives, who is a technical analyst for investment firm Wedbush Securities, says Mr Musk’s tweet will “send this Twitter circus show into a Friday the 13th horror show”.
I’m saying Wall Street “would now view this deal as one that 1) is likely to fall apart, 2) Only one will go to see Musk negotiate for a lower price, or 3) Musk will simply walk away from the deal with a breaking $1 billion fee”.
Mr Ives said that if Mr Musk still does not decide whether to go ahead with this agreement, “a clear renegotiation will probably be on this table”.
I add that many will see, I say I highlight the number of spam accounts “as a way out of the deal for the rapidly changing market”.
“Musk’s nature of creating so much uncertainty inside a tweet (we don’t rank them) is very troubling to us…and now sends this whole thing into a circus show with many questions and no concrete answer as to the path of the case moving forward.”