Report Reveals Elon Musk May Walk Away From $44B Twitter Deal Over Fake Accounts – According to published reports on Thursday, Elon Musk may soon withdraw from his $44 billion deal to purchase Twitter because he feels he lacks sufficient information to evaluate the level of fake accounts.
Even after the social media giant in early June consented to Musk’s demands to share information on hundreds of millions of daily tweets, the world’s richest man maintains that spam accounts on Twitter cannot be verified, according to a report in the Washington Post.
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Twitter had a call with a few members of the media early on Thursday and claimed that it removes 1 million spam accounts daily, possibly in anticipation of the Musk news. The company also reaffirmed that, as stated in its quarterly profits, less than 5% of its user base are fake users.
According to a source, Musk is scheduled to speak Saturday at the Allen & Co. Sun Valley conference in Idaho, where it is anticipated that he will discuss the Twitter acquisition. The mogul did not respond to The Post’s requests for comment.
In recent weeks, Musk stated that his offer was based on Twitter’s SEC filings being true, and that before he can proceed, Twitter needed to show him that the 5 percent figure is accurate. Additionally, he stated that he believes the actual number to be four times greater.
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Early on Thursday, Twitter held a media call, which led to a 1.5 percent increase in the stock price to $38.79. The hedge fund manager assumed that Twitter shares would drop another 10% to roughly $33 to $34 a share if Musk said he was pulling out of the $54 a share agreement and paying a $1 billion break-up fee.