In the latest development pertaining to the Twitter shake-up, Tesla CEO Elon Musk warned that his planned $44 billion deal to buy the microblogging platform “cannot move forward until” the company’s chief executive Parag Agrawal publicly produces proof that the website has less than 5% spam accounts
Following the announcement shares of Twitter fell more than 8 percent on Monday.
Twitter folks a few weeks ago wanted nothing more than to thwart Elon Musk’s attempted buyout of the entire social media platform.
And all of the sudden, Twitter is scrambling to get Elon to sign the deal.
WLT has some theories about why Twitter folks have a change of heart about Musk’s buyout:
The latest reports now indicate that the company is scrambling to finalize the Musk deal as soon as possible…
I am sure we are all thinking the same thing: what changed?
Could it be that their reported daily user activity has been falsified in their S.E.C. filings? Daily user counts and activity are key metrics to properly valuing any social media network…
To falsify these numbers for an online social network is outright fraud, the same way falsifying information on hard assets, working capital, or any other traditional balance sheet figure would amount to securities violations and fraud.
He speculated that the number may be as high as 90%, but sources place the more realistic figure at around 20%—still an enormous number.
Twitter’s legal team recently accused Musk of violating an NDA by revealing the sample size they used to test for automated bot accounts, and the C.E.O. went on to say that the number of automated bots could not be pinned down definitively…
Below are the latest developments:
Musk has called on the SEC to investigate the actual number of users on the platform. https://t.co/3M8WCFu7BB
— The Epoch Times (@EpochTimes) May 18, 2022
— James Stephenson (@ICannot_Enough) May 17, 2022
More details from the NTD News report:
Twitter wants the $54.20 per share in cash deal with Musk to go through, while the billionaire is hesitant following allegations that the social media platform is rife with spam or bot accounts.
“The preliminary proxy statement contains important information including the background of, and reasons for, Twitter’s transaction with Mr. Musk,” the company said in a statement, adding that it expects the deal to close in 2022.
JUST IN – Elon Musk says his lowest estimation of Twitter bots would be 20%
— Insider Paper (@TheInsiderPaper) May 16, 2022
I don’t know if @ElonMusk is right that there are far more bots and multiple users on Twitter than the company admits, but I know a large percentage of the people who attack me daily about Ukraine are ones who have created their account in the last 4-8 weeks and have 0 followers.
— Glenn Greenwald (@ggreenwald) May 18, 2022