Thursday July 7, 2022

Elon Musk’s plan to buy Twitter is on hold as the billionaire wants to ensure that “spam/fake accounts do indeed represent less than 5% of users” on the social media site.

Musk’s tweet was shared alongside a Reuter’s article that revealed a Twitter filing said ‘junk’ accounts represented “fewer than 5% of its monetizable daily active users during the first quarter.” However, as The Verge noted, many people believe the percentage is much higher.

Musk said the delay is only temporary and he is still “committed” to acquiring the site. However, the results of the investigation into the number of ‘junk’ accounts will likely have an impact on what happens next.

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Also Read: Twitter Accepts Elon Musk’s Takeover Offer

If less than 5% of users are indeed ‘junk’ accounts, the deal would presumably proceed as planned after a short delay. However, if that number is 5% or higher, things could get messy as Musk could push for a lower purchase price.

Think of it like buying a car, if the seller says it’s only been driven 30,000 miles (48,280 km) but it looks like it’s been to hell and back, you’d probably want to check things over before pulling the trigger. Musk is essentially doing the same thing with Twitter.

Regardless of what happens next, Wall Street appears to be getting nervous as Twitter’s stock price fell from $45.09 (£36.85 / €43.36) yesterday to $40.40 (£33.02 / €38.85) this morning after Musk’s tweet. That’s far below Musk’s intended purchase price of $54.20 (£44.30 / €52.12) per share.


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