Elon Musk has put the purchase of Twitter on hold because he simply doesn't believe the number of spam/bot accounts is less than 5% of the total reported number of users. Musk estimates that bots, at the low end, make up 20% of all Twitter accounts. If that's the case wouldn't that mean company officials have been misleading investors and regulators for years?
Musk indicated that he would be willing to still go through with the purchase for a lower price.
Seems to me that if the company was aware the less than 5% claim was wrong they may be willing to go along at a lower price because the alternative may be jail time for fraud. If they do allow a lower price then they may face civil suits from investors who were expecting the original $54.20 per share. The company officials are in a tight spot but I can't see many having much sympathy for them.
This will Musk buy Twitter soap opera is the best "will they or won't they?" since Sam and Diane on Cheers.
I don't think Mr. Musk got to be a billionaire by being stupid. This could have been part of the plan from the get go.
ReplyDeleteIt's funny / genius that he's using their own platform to Tweet out things that should lower his purchase price.
ReplyDelete