The acquisition of Twitter by Elon Musk is not yet finalized. Even though Elon Musk, CEO of Tesla Motors, completed the sale of Twitter to him for $44 billion more than two weeks ago, the acquisition of the massive social media platform has not yet been completed.
Musk has stated in a new update to this tale that the Twitter transaction is “temporarily on hold,” pending “information supporting computation that spam/fake accounts do indeed comprise fewer than 5 percent of users.” This update is related to the ongoing drama that has been unfolding.
This is about research that was published by Reuters earlier this month. According to this article, Twitter believes that spam and bogus accounts make up fewer than 5 percent of its overall userbase. However, Elon Musk does not appear to agree that only 5 percent of people are affected by this.
If a greater percentage of Twitter users are made up of spam and bogus accounts, then the firm’s value would decline, making it cheaper for any buyer interested in purchasing it. Elon Musk’s bid to buy the social network would be less than $44 billion if this were the case.
It is not apparent what is happening behind the scenes, but it is not unexpected that the news has caused a reduction in the price of Twitter shares.
Since Elon Musk claims that he is still dedicated to the agreement, this strategy can only be a very late-stage bargaining technique at this point. We will post it here as soon as it becomes available.