There was an insane hype over all the new outlets and social media platforms when Elon Musk offered Twitter a generous amount of $44 billion. However, after that hype and everything else, Elon Musk is now putting that deal on hold because of fake Twitter account details. He said in a statement that he was waiting earnestly for information “supporting the claim that fake Twitter accounts do represent less than 4% of its users”.
To avoid the doubts and speculations of the analysts, Mr. Musk Tweeted, “Still committed to acquisition”. However, the toll has been taken from Twitter in terms of decreased stock exchange value. After Mr. Musk’s tweet, the share price of Twitter plunged 10% in the morning trade in New York. It is indeed shocking for Twitter employees and executives. And indeed, Mr. Musk’s doubts have put the share price of Twitter at a substantial loss.
What do analysts think about Elon Musk’s tweets?
The analysts speculate Elon Musk might seek a way to renegotiate the deal again with Twitter. It is surprising to know that even before the tweets of Elon Musk, the company’s stock was selling for less than $54.20 per share. It is a resonating sign that markets didn’t believe that Elon Musk would complete the Twitter acquisition deal.
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
Besides the markets, famous tech analyst such as Dan Ives was also sensing something fishy about Elon Musk. Dan Ives is a tech analyst at an investment firm Wedbush Securities and said that Elon Musk’s tweet would “throw the Twitter show into a mess like a Friday the 13th horror show”. He also expressed that many people out there in the social media outlets and tech giants would see Elon Musk’s comments to get out of his Twitter acquisition deal.
Dan Ives also said, “Elon Musk’s deliberate attempt to put Twitter in a hot mess of a circus can sabotage Twitter’s reputation. The comments of Elon Musk are troubling and can even obscure the way further to the fruition of the Twitter acquisition deal.
Genuine Concerns of Elon Musk
The point to ponder is that Elon Musk has legit concerns. After all, Elon agrees to buy Twitter at a higher price than any bidder could offer. From the start, Elon Musk was against the “Spam bots” and he’s made it his plan to weed out the spam bots of the Twitter environment. It became a top-notch goal after he initially offered the deal.
The bots are angry at being counted ?
— Elon Musk (@elonmusk) May 14, 2022
Moreover, Twitter also has faced some very harsh criticisms for not doing enough to exterminate fake accounts and spam bots. Over two weeks ago, Twitter estimated that a fake account represents fewer than 5% of its daily active users. In the previous figures, Twitter showed the same figure on social media networks.
So, it’s probable that the figures can be higher than what Twitter claimed. An analyst, Susannah Streeter at Hargreaves Lansdown, said, “the number of spam bots on any service is a key statistic to determine the credibility and future prosperity of the service. As higher than expected, figures of spam bots can hamper and impede the ability of the advertising to grow besides putting at risk the paid subscriptions.
However, there are genuine concerns over the honesty of Elon Musk’s concerns over spam bots and spam Twitter accounts. Moreover, weeks of chaos in the US have plunged the market value of many tech companies. Even Tesla, of whom Elon Musk is the chief executive, has seen a major downfall.
Concluding remarks
So, Elon Musk is jolting Twitter again with the help of mere tweets. When he made the deal to buy Twitter, he said outspokenly on Twitter that he would “clean up” the platform from bots and spam. Moreover, giving a free hand to hot-tempered zealots like Donald Trump was also expected under the vocal slogan of “freedom of expression and free speech”.
It all seems now uncertain given the quips Elon Musk has made on Twitter. It is surprising to know that Elon Musk sold some of the valuable Tesla assets to finance his Twitter acquisition deal, which is now on hold. So, it’s worth seeing what course Elon Musk’s Twitter acquisition deal would take from now on.
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