Elon Musk Says Twitter Deal Is ‘On Hold,’ But Shares Where He Stands on It
Tesla CEO Elon Musk shared that his deal with Twitter is on hold. “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk tweeted…
Tesla CEO Elon Musk shared that his deal with Twitter is on hold.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk tweeted Friday.
He added, “Still committed to acquisition.”
Musk posted a link to a Reuters article titled, “Twitter estimates spam, fake accounts comprise less than 5% of users -filing.”
The outlet noted Twitter said in a filing it faced several risks until they close the deal with Musk, including whether advertisers would continue to spend on the social media platform and “potential uncertainty regarding our future plans and strategy.”
According to The Washington Post, bots on Twitter are “automated accounts that can do the same things as real human beings: send out tweets, follow other users, and like and retweet postings by others.”
However, the outlet explained, “Spam bots use these actions to engage in deceptive, harmful and annoying activity.”
Last month, Musk outlined potential changes to Twitter, including tackling spam bots.
“If our Twitter bid succeeds, we will defeat the spam bots or die trying!” Musk said.
He continued, “And authenticate all real humans.”
One user wrote, “If Twitter bid succeeds, he will focus on solving the real problems. Make platform’s algorithm open source, eliminate horrible scam bots, edit functionality, strict adherence to free speech, simpler verification process.”
Musk responded, “Yes.”
CNN noted Musk would owe the company a $1 billion breakup fee if he were to walk away from the deal.
Tech analyst Dan Ives of Wedbush Securities wrote in a note to clients, “The Street will view this deal as 1) likely falling apart, 2) Musk negotiating for a lower deal price, or 3) Musk simply walking away from the deal with a $1 billion breakup fee,” as CNN reported.
He added, “Many will view this as Musk using this Twitter filing/spam accounts as a way to get out of this deal in a vastly changing market.”