NEW YORK, NEW YORK – MAY 2: Elon Musk attends the 2022 Met Gala Featuring ‘In America: An Anthology of Fashion’ at The Metropolitan Museum of Art on May 2, 2022 in New York City. (Photo by Theo Warg/WireImage)
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Shares of Twitter fell about 4% after markets closed Thursday following a report by The Washington Post that said billionaire Elon Musk’s deal to buy the company was in jeopardy.
According to Musk, the deal was already in uncharted territory after he requested more information about the percentage of spam accounts on the platform. But The Post, citing one unnamed source, said Musk’s team has stopped participating in some discussions to finance the $44 billion deal. Musk’s team has determined it can’t control Twitter’s spam account numbers, and now they’re ready to make a “change in direction” soon, the Post reported, citing a source.
Musk can’t just pay $1 billion for the gap and walk away. Twitter could try to force Musk to comply with the original terms, arguing that the reasons for the refusal are not related to its core business.
Twitter held a virtual briefing with reporters earlier Thursday to explain how it determines which accounts on its platform are bots or spam. The company said trained staff use internal data and signals to arrive at a figure that suggests less than 5% of monetized daily active users (mDAU) are spam accounts each quarter.
A Twitter spokesperson noted in an earlier statement that the company “shared and will continue to share information with Mr. Musk to complete the transaction in accordance with the terms of the merger agreement. We believe this agreement is in the best interests of all shareholders. We have intent to close the transaction and execute the merger agreement at the agreed upon price and terms.”
Musk did not immediately respond to a request for comment on the report.
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Twitter shares fell after reports that the deal with Musk was in jeopardy
Source link Twitter shares fell after reports that the deal with Musk was in jeopardy