Elon Musk’s ambition to acquire Twitter, according to a recent report, is in jeopardy due to his inability to identify the number of bogus accounts on the social media network.
Musk declared his intention to acquire Twitter in April. The corporation first fled the billionaire’s embrace, but ultimately backed the transaction. On the other hand, Musk’s sympathies have shifted toward the proposition.
Musk announced in mid-May that the acquisition was on hold awaiting an investigation into the number of bogus accounts on the site. Twitter estimates that 5% of its accounts are bogus, whereas Musk places the number substantially higher.
Commentators speculated at the time that the move may have been part of a strategy to reduce the acquisition price.
Since then, the agreement has proceeded ahead in stops and starts, with Musk claiming that a greater proportion of Twitter accounts are false than the social media behemoth is willing to disclose.
A new chapter in the saga began Thursday when The Washington Post reported that “Musk’s camp concluded that Twitter’s figures on spam accounts are not verifiable.”
According to the article, the agreement is in “serious jeopardy.”
The Post said that despite Twitter’s assertions that it provided Musk’s teams with considerable data, the billionaire’s advisors contend that they cannot evaluate the company’s prospects owing to a lack of information.
According to the article, efforts to arrange funding for the $44 billion transaction have halted.
It was also mentioned that Musk may not want to complete the transaction under the present circumstances because Twitter’s stock price has declined. And there was some finger-pointing.
The Post quoted “a person familiar with the discussions, speaking on the condition of anonymity because of the sensitive nature of the talks,” as saying, “Twitter has not been cooperative.”
However, Carl Tobias, a law professor at the University of Richmond, called the fake account issue “an excuse.”
More on this story via The Western Journal:
He said Musk was raising it as grounds to back out of the deal if he should wish to do so.
A Friday report in The New York Times indicated that Twitter was unaware of the Musk team’s latest concerns and was planning to go forward with the deal.
“Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement,” the company said in a statement, according to the report. “We believe this agreement is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms.” CONTINUE READING…