Will Elon Musk Cancel or Renegotiate Twitter Deal?

Elon has tweeted that his deal to purchase the social media micro blogging platform Twitter is on hold while details on the calculation that fake Twitter accounts represent less than 5% of users are verified. Markets reacted violently to Musk’s announcement with Twitter stock decreasing almost 10% during trading on Friday May 13th.

We’ve reported before on Twitter’s sketchy active user numbers and the platforms stagnant growth in the United States. I think Elon will try to renegotiate the buyout deal if findings conclude that over 5% of accounts on Twitter are spam/fake accounts. If Twitter can’t show that less than 5% of accounts are fake, they’ll be in a tight spot not only on the deal with Musk but also potentially in some legal trouble with shareholders.

Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users: twitter.com/elonmusk/status/1525049369552048129?s=20&t=5jP-FnHUAZepvUy5UK0Y9Q

#twitterupdate #ElonMusk #TwitterStock

 

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