Giving up buying Twitter? Elon Musk put a deal with the company on hold
Elon Musk said that his agreement with Twitter, worth 44 billion dollars, on the purchase of the company is “temporarily on hold”.
“The agreement with Twitter is temporarily pending. “I expect data that prove that spam (fake accounts) really represent less than 5% of users,” said the CEO of Tesla in his tweet.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
Actions Twitter then fell more than 25% to $ 33.79, indicating that investors bet the deal would not pass.
However, shortly after that, Musk published a subsequent tweet. He noted that he was “still committed to the acquisition.”
After the first tweet, analyst Dan Ives estimated that Wall Street investors now think that there is a 50% lower chance of closing the deal. He added that Mask’s tweet was a “circus show on Twitter”. Wall Street will consider this agreement a “probable breakup” or that “Mask is negotiating a lower price”.
Ives explained that Musk could try to reorganize the financing, so that he would not have to rely on the shares of his company for electric cars Tesla. Concerns over Mask’s takeover of Twitter and wider technology sales have led to a 29 percent drop in Tesla shares over the past month.
There is also an option, according to Ives, that Elon Musk could give up and pay a billion-dollar compensation for the termination.
“Many will see this as Musk using the application for Twitter/ spam accounts as a way to get out of this business in a market that is changing a lot, “he said.
Maskov prvi tweet
In Mask’s first tweet, the billionaire linked Reuters’ May 2 news, which quoted Twitter’s regulatory report.
“Twitter Inc. estimated in a submission on Monday that fake or unsolicited accounts accounted for less than 5 percent of its daily active users during the first quarter,” it said.
Musk said that combating unwanted accounts and bots will be one of his priorities for Twitter.
Investors had to “weigh” the legal problems for Mask, as well as the possibility that the purchase of the platform could distract attention from the management of the world’s most valuable car manufacturer.
In a letter sent to employees and confirmed by Twitter, CEO Parag Agraval said the company had not reached a milestone in growth and revenue after the company began “aggressively” investing to expand its customer base and revenue.
Musk put Twitter on hold after two dismissals at the company
Kaiwon Bakerpour, the company’s general manager, and Bruce Falk, Twitter’s revenue chief, announced that Agraval had fired them.
Jay Sullivan will take over Beikpur’s position.
Changes have been taking place on Twitter since the company’s Board of Directors announced last month that it had accepted Mask’s offer for a purchase of 44 billion dollars. He said he intends to turn the company into a private one.
Elon Musk has promised to reconstruct the content moderation policy companies. It has resulted in bans on controversial figures, many of whom are right-wing.
Twitter fears employees could resign en masse ahead of Mask’s planned takeover, according to a regulatory submission filed this week.
Source: BIZlife by bizlife.rs.
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