Elon Musk suspended Twitter for $44 billion. One explanation is that bots have a huge influence on Twitter.
Elon Musk tweeted that he won’t bid on Twitter until he sees quarterly estimates of fake accounts. Elon’s decision sent Twitter shares down, leaving us guessing what he actually meant.
The deal between Twitter and Elon Musk cannot be legally stopped, but lawyers are still working to confirm it. Musk said in an interview with the New York Times that he was confident of making the purchase.
Musk tried to bring Twitter back to the negotiating table to lower the company’s prices or find other ways to work together.
Corporate governance expert Stefano Bonini says these numbers are a sign of a potential exit.
Social media is full of accounts sending spam and requests to others. There are many different types of fake accounts, but they all have the same goal. It’s about getting more followers and making you look famous.
Musk’s tweet indicated more fake accounts on Twitter than the company did.
Since 2014, Twitter has been tracking the percentage of tweets with fake information in their total content. The company estimates the number to be less than 10% in its latest results. One study found that in 2017, the range was between 9% and 15%.
Twitter said it had invested in deleting spam accounts and blocking new accounts, but dismissed concerns from cybersecurity experts.
Elon Musk, who has over 92 million followers on Twitter and has been targeted by crypto scammers in the past, is opposed to the Dashbot idea.
Elon Musk said one of his priorities for the platform would be to “defeat spam or try to die.”
We should be skeptical about the number of users because there’s no way to know if they’re human,” said Brian Weiser, Global Head of Business Intelligence at GroupM. Therefore, it is difficult to estimate how many users there are actually.
Wieser noted that Twitter encourages the use of pseudonyms rather than Facebook, which attempts to associate a profile with a user’s true identity.
Is it time to renew your contract?
Elon Musk offered to take over Twitter. Technology stocks fell as the Nasdaq fell 18% after the presentation was announced. Twitter’s stock price fell, but it outperformed the technical benchmark thanks to Musk’s bid.
Nathan Anderson, founder of Hindenburg Research, said the downturn in Tesla stock provides Musk an opportunity to close the deal at a lower value.
“The board has approved a deal when the terms are more favorable, and I believe it will happen again.”
It’s not known if Elon Musk’s recent trading questions go beyond research and strategy, but analysts suggest he may be looking for more favorable terms.
Hargreaves Lansdown believes that $44 billion could be a tactic that cuts the amount Mark wants to raise to buy Facebook.
After Elon Musk’s announcement, technical analyst Brent Thill believes he is trying to negotiate a lower price.
Acquisitions are easy to negotiate, but difficult to cancel once agreed upon. Delaware courts often authorize these types of transactions, and if Twitter board members drive down prices for no good reason, you risk putting them at risk.
Musk may have been negotiating with Twitter. If the “negative material change” condition succeeds, the company must accept the lower offer. Many buyers were unable to change the original contract price because COVID-19 could negatively affect valuations.
One company that has contributed is LVMH, which has forced Tiffany to stop raising jewelry prices during the pandemic. The company threatened to withdraw from the deal because it agreed to keep Tiffany’s price the same during that period.
Musk may be testing if he can renegotiate Tesla prices. Investors can use new ‘issues’ as a basis for renegotiating purchase prices, said Ann Lipton, professor of business law and entrepreneurship at Tulane University.