Posted on 05/13/2022 8:20:59 AM PDT by SeekAndFind
Tesla CEO Elon Musk’s planned purchase of Twitter appears to have hit a snag regarding the number of fake accounts and bots on the platform.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk posted to his Twitter account early Friday morning.
Musk’s tweet linked to a Reuters story from earlier this month about Twitter’s financial filings that estimate the bogus accounts represent fewer than 5% of the platform’s “monetizable daily active users.” This development suggests that Musk is skeptical of the estimate, and it may impact what he’s willing to pay to purchase the company.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
It is not clear yet whether the issue will create an impasse and prevent the deal from moving forward. Musk’s tweet sent Twitter’s stock down 17% before trading opened on Friday to $37.20—well below the $54.20 per share he agreed to pay to buy the company.
Musk’s concerns about Twitter’s true count of fake and spam accounts are valid. Last month we learned that Twitter had overstated the number of true users on the platform in Q4 2021 by 1.9 million.
Wedbush Securities analyst Dan Ives says the implications of Musk’s tweet are significant.
“The implications of this Musk tweet will send this Twitter circus show into a Friday the 13th horror show as now the Street will view this deal as 1) likely falling apart, 2) Musk negotiating for a lower deal price, or 3) Musk simply walking away with a $1 billion breakup fee.”
(Excerpt) Read more at pjmedia.com ...
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He’s being Investigated and charged since he wanted to buy Twitter.
Swamp attack. Strzok’s wife.
We already know that twitter had two sets of books.
You gotta admire a guy who can just shrug at a 1 billion dollar breakup fee.
twitter was 1.9 million off on members......bet it’s double
Please hold.
Your call is important to us.
If there was misrepresentation on Twitters part there may not be a walk away cost or it may be decreased. Certainly Elon put the cat amongst the pigeons.
If there was a material misrepresentation, the company stands at risk for a huge stockholder suit with Musk being the biggest holder. In a just world, the twitter management would all end up in jail for a gigantic fraud. Of course, that is NOT going to happen in a dem controlled government.
“Charged” huh?
With what exactly?
Elon wants out of the deal. FBI investigation. The dems will never let him own twitter and chance trump coming back
Man, they’re thorough and have their corruption covered and safe.
Is it possible that Musk is just leveraging the phony numbers at Twitter to drive down the purchase cost? His announcement has already battered the share price this morning. I just don’t know if this creates an opportunity to negotiate price or whether he is stuck with his original bid.
The left thought this would be a good opportunity to put Musk’s financials under the microscope, but what will actually be found is that Twitter is vastly overvalued through creative book keeping and statistics.
“Charged” huh?
With what exactly?
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They’re working on that.
Good - I suspect Twitter’s a lot of smoke and mirrors. Has the feel of the old DOTCOM companies of yore...
Musk can buy them cheaper after the truth starts leaking out.
btt
IF there has been FRAUD on the part of Twitter with fake accounts, I do NOT believe Musk will have to pay a penny for walking away.
When ANYONE buys ANY stock, they must rely on the facts presented to the PUBLIC. This is a public stock-—ALL the other investors have also been scammed. Could lead to a total meltdown & a class action suit.
IT TWITTER has been doing a sham all these years, MUSK should walk away from current deal without losing a penny.
Like buying a car-—GET THE facts FROM CAR FAX.
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Charged part is wrong…. They are planning on it - if he doesn’t step back.
Intimidation. Swamp Rule.
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