The purchase of Twitter by Elon Musk is not yet finalised. Tesla Motors CEO Elon Musk announced the purchase of Twitter for $44 billion more than two weeks ago, but Musk has failed to complete the transaction.
Musk has recently stated that the Twitter deal is
“temporarily on hold”, pending “details supporting calculation that spam/fake
accounts do indeed represent less than 5% of users”.
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
This is in response to a story published by Reuters earlier
this month that said Twitter thinks spam and fraudulent accounts make up fewer
than 5% of its overall user base. Elon Musk appears to dispute that just 5% of
customers are affected.
If a bigger percentage of Twitter users are spam and
fraudulent accounts, the company's value will drop, making it less valuable to
any acquirer. Musk would have to offer less than $44 billion to purchase the
social media platform.
It's unclear what's going on behind the scenes, but
Twitter's stock has dropped as a result of the revelation.
Elon Musk has stated that he is still committed to the
agreement, implying that this is only a last-minute negotiating strategy. In
any event, we'll keep this space updated when new information becomes
available.
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