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Musk says a Twitter deal at a cheaper price is “not out of the query”


In April Elon Musk made a bid to purchase Twitter at $54.20 a share (valuing the corporate at $44 billion). Nonetheless, the deal has now been placed on maintain after Musk has expressed doubt that the proportion of spam/pretend accounts is lower than 5% as Twitter claims. “This deal can’t transfer ahead” till Twitter exhibits proof for the sub-5% quantity, tweeted Musk.

Musk claims that the unique deal was made primarily based on Twitter’s SEC filings, which state that the pretend accounts make up 5% or much less of the energetic person base. Nonetheless, if that proportion is greater, it is going to impression the corporate’s backside line.

“You may’t pay the identical value for one thing that’s a lot worse than they claimed,” mentioned Musk at an All-In Summit 2022 convention in Miami, suggesting that he might ask for a value reduce if Twitter can’t show its numbers to his satisfaction.

Musk believes that at the least 20% of Twitter customers are pretend and alleged that Twitter’s CEO refused to point out proof for the 5% estimate. As a response, CEO Parag Agrawal posted a prolonged thread explaining how the estimate was calculated.

“Sadly, we don’t imagine that this particular estimation will be carried out externally, given the crucial want to make use of each private and non-private info (which we will’t share). Externally, it’s not even doable to know which accounts are counted as mDAUs on any given day,” writes the CEO.

Twitter in the meantime maintains that it’s dedicated to closing the deal on the agreed $54.20 per share value.

Supply



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