Whelp, it looks like there may be some issues with Elon Musk getting Twitter! I have been reading the blogs, and let me say that it seems like he has some things that need to be sorted out before he can fully take over. I know when I talked about him before on this forum, I told you guys how I was so disgusted that he would have this social media site. I just kinda felt that he would not do it any good. Now remember, just a week ago we saw in the news, how Russia had an issue with Elon. It got to the point he life was at risk. I think personally, this is the reason for Elon making his decision to put Twitter on hold. However, then I found out that Elon found that Twitter has a ton of spam accounts! I mean, I am not surprised about any of this. There are so many people now a days creating multiple accounts to do god knows what.
So what I have found from reading all the articles on this is, Elon Musk has decided to put his offer to buy Twitter (TWTR) on hold, only weeks after agreeing to buy the firm for $44 billion. Musk tweeted on Friday, “Twitter transaction temporarily on hold for details supporting computation that spam/fake accounts do indeed comprise less than 5% of users.” Twitter’s stock dropped more than 20% in premarket trade as the news broke, before recovering somewhat. Musk tweeted two hours later, saying he is “still committed to acquisition.”
Musk referenced to a May 2 Reuters piece regarding Twitter’s most recent disclosure about its spam and fake account problem in his tweet about putting the deal on hold. Twitter claimed that bogus or spam accounts made up less than 5% of the platform’s active users during the first three months of the year in its quarterly financial report, issued on April 28. The figures were based on a survey of sample accounts, and Twitter thought the statistics were “fair.”
However, it admitted that the figures were not independently validated, and that the true number of fraudulent or spam accounts could be greater.
For years, Twitter has struggled with spam, and the company has repeatedly stated that decreasing bogus and malicious accounts is critical to its capacity to continue expanding. It’s unclear why Musk would back out of the arrangement following the latest revelation. whats more Ludacris is that,
If Musk cancels the arrangement, he will owe Twitter a $1 billion breakup fee.
“The Street will see this deal as either 1) coming apart, 2) Musk negotiating a lower deal price, or 3) Musk simply walking away with a $1 billion breakup fee,” Ives wrote. “Many would interpret this as Musk using his Twitter filing/spam accounts to get out of the agreement in a rapidly shifting market.”
Since Musk and Twitter agreed to buy the company roughly three weeks ago, stocks have been substantially lower, particularly in the IT sector.