Elon Musk says Twitter deal on hold pending details on fake accounts; shares plunge 18% [Down 10.8% at 5:11 AM PDT]

CNBC ^ | 13 May 2022 | Sam Shead

[bray]

Looks like Twitter may have just hit the iceberg.

[mewzilla]

Twitter’s past 10-Ks and 10-Qs might make for really interesting reading...

[Dutch Boy]

I was thinking the same. I am glad I bought a new bag of popcorn.

[zeestephen]

Don't forget the advertising agenda that has convinced all of us that every family is led by a loving and financially responsible Black father and that 50% of white women now marry Black males.

[mewzilla]

Well, if Musk is really a white hat, maybe he figures outting Twitter would be worth it and, what the heck, it’s not like he can take it with him.

[Red Badger]

DOJ should start locking people up.

[Presbyterian Reporter]

“””about a third 1/3 of accounts are spam bot fake accounts.”””

---

What Musk is doing reminds me of the lawyer quip: Never ask a question of the witness unless you already know the answer.

Musk is a mega-techno-geek and he probably has already calculated the number of fake accounts in Twitter

[lucky american]

When I was on Twitter I looked through Obama’s followers. I didn’t get through the millions of them but I can tell you the first 500 of them about 80 percent never tweeted or retweeted anything. They just followed Obama. It’s tedious to do but many articles about fake followers were out there.

[volunbeer]

DOJ should start locking people up.

---

They are going after Musk. There is little chance they will go after the people at Twitter who committed fraud. Wrong party.

[nathanbedford]

I would be very surprised if the deal did not provide for an escape path for Musk if the underlying accounting were false. Even more improbable if the underlying accounting were fraudulent.

I hope he walks and saves his billion dollars to apply his billions as well as his remarkable talents to better advantage in an allied medium that does not compete with Trump.Let Twitter wither.

[RummyChick]

I have been saying this deal was not going to go through and used the subscribers as a possible reason for him to get out BUT...I did see this article yesterday

https://www.businesstoday.in/latest/world/story/explainer-can-elon-musk-renegotiate-price-for-his-twitter-deal-333176-2022-05-11

However, falsely stating subscribers would seem to be different than just bad business environment

https://www.businesstoday.in/latest/world/story/explainer-can-elon-musk-renegotiate-price-for-his-twitter-deal-333176-2022-05-11

[bert]

Musk is the better man. Biden knows it and is pissed.

Biden will be gone before the matter is litigated.

[devane617]

exactly....he will devalue the deal and make a new offer

[Yo-Yo]

Musk will either own Twitter and make important changes, or ...

Musk will reveal the lies and crimes of Twitter’s corporate accounting and destroy the company as he walks away from the deal.

Win-Win.

I wouldn't consider walking away from the deal and forfeiting $1 billion as a 'win.'

[Quilla]

I worked for a company that transitioned from privately held to publicly traded during my tenure. The steps to become SOX compliant approached ridiculousness. We wasted hours of labor each day crossing t’s and dotting i’s. I’m ashamed to say I’ve cussed Sarbanes and Oxley more than a few times.

[RummyChick]

I think it is possible to walk away without losing the billion or renegotiate the terms. It really depends on the fine details of the contract

CEO just fired some people , put new hires on hold, and says he is going in a different direction. twitter is in the weaker negotiating position right now.

[texas booster]

... nor does it carry a small price tag for companies who traditionally have underfunded or undervalued the accounting function.

And yet the State of NY thinks that it's arcane rules for company valuation might trap a Trump company, that follows SOX compliance?

Not likely.

[americas.best.days...]

Sounds like he took Steve Bannons advice.

[cornfedcowboy]

Buy the dip! He already knows all of this.

[ClearCase_guy]

I wouldn't consider walking away from the deal and forfeiting $1 billion as a 'win.'

I was being selfish and trying to say that all outcomes seem to damage Liberals who like Twitter just the way it is. I think they will lose which, for me, feels like a Win.

If Musk does lose $1B, then that's a loss for him. But, if Twitter has been following fraudulent practices (they have) then I would think he could walk away without sacrificing the $1B. We shall see.