Monday, May 23, 2022

Elon Musk tweets about putting Twitter deal temporarily on hold

Elon Musk today tweeted he is putting his US$44 billion Twitter offer on temporary hold, pending details supporting calculations that spam/fake accounts do indeed represent less than five per cent of users.

He included a link to a May 2 Reuters article reporting on Twitter’s estimated fake and spam accounts in the first quarter of the year that said that, of the 229 million Twitter users who saw advertising in the first quarter of 2022, less than five per cent were fake accounts. Musk now says he wants to see more details about the number of fake accounts on Twitter before his deal to buy the social media platform goes through. 

The chief executive officer of Tesla and SpaceX has been well aware of the existence of spam accounts on Twitter since the initiation of the deal. In a press release announcing the deal on April 25, Musk had noted that he wants to make Twitter better than ever by prioritizing defeating the spam bots, and authenticating all humans.

Musk’s tweet sent the shares of the social media company into a tailspin, bringing them down by about 8.8 per cent the same day. But, he followed up himself in a tweet thread to say “he is still committed to acquisition”. 

The transaction, which was unanimously approved by the Twitter Board of Directors, is expected to close in 2022 as per the initial announcement, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals, and the satisfaction of other customary closing conditions. 

Musk has secured US$25.5 billion of fully committed debt and margin loan financing and is providing an approximately US$21.0 billion equity commitment. There are no financing conditions to the closing of the transaction, according to the initial announcement made by Twitter.

 

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Jim Love, Chief Content Officer, IT World Canada
Pragya Sehgal
Pragya Sehgal
Born and raised in the capital city of India - Delhi - bounded by the river Yamuna on the west, Pragya has climbed the Himalayas, and survived medical professional stream in high school without becoming a patient or a doctor. Pragya now makes her home in Canada with her husband - a digital/online marketing fanatic who also loves to prepare delicious meals for her. When she isn’t working or writing around tech, she’s probably watching art films on Netflix, or wondering whether she should cut her hair short or not. Can be contacted at psehgal@itwc.ca or 647.695.3494.

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