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Elon Musk Threatens Halt Twitter Deal Unless Details Are Released About Fake Accounts

Photo by Alexander Shatov via Unsplash

Elon Musk Threatens Halt Twitter Deal Unless Details Are Released About Fake Accounts

By Movieguide® Staff

As his potential landmark $44 billion acquisition of Twitter looms, Elon Musk said he whalt the deal if Twitter refused to release data about the number of “bot” accounts on the platform.

According to estimates, the number of spam/fake accounts is around 20%, despite Twitter’s report of only 5%.

“20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher. My offer was based on Twitter’s SEC filings being accurate. Yesterday, Twitter’s CEO publicly refused to show proof of <5%. This deal cannot move forward until he does,” Musk wrote in a recent Tweet.

Musk said that should the deal go through; his priority would be to clear the platform of fake accounts.

Wedbush analyst Daniel Ives said that Twitter’s stock would plummet should Musk withdraw.

“If they do not accept a lower price (after negotiations following the bot issue scrutiny over the coming weeks) for the deal and Musk does actually walk then the stock would likely see a sub $30 level with a broken deal in this shaky market backdrop,” Ives said.

“The bot issue at the end of the day was known by the New York City cab driver and feels more to us like the ‘dog ate the homework’ excuse to bail on the Twitter deal or talk down a lower price,” Ives added.

Movieguide® previously reported on the deal:

Twitter posted an influx of income and users for the first quarter of 2022 following Elon Musk’s purchase of the company to go private.

Q1 revenue was $1.20 billion, a 16% increase reflecting “headwinds associated with the war in Ukraine,” Twitter explained. The company’s net income for the quarter was $513 million, well above estimates by Wall Street.

While the company scheduled to meet and discuss the Q1 earnings, after tech billionaire Elon Musk purchased the social media platform, Twitter canceled the meeting.

“Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward looking guidance, and are withdrawing all previously provided goals and outlook,” a statement from the company read.