Elon Musk: Twitter Transaction “Temporarily Pending” | Nationwide

Detroit (AP) — Elon Musk On Friday, he said plans to buy Twitter were “temporarily pending” and were trying to identify the exact number of spam and fake accounts on social media platforms.

Musk has voiced his desire to solve Twitter’s problem with “spambots” that imitate real people, and seems to question whether the company underreports them.

“twitter Temporarily pending transactions Pending details to support the calculation that spam / fake accounts actually make up less than 5% of users, “Mass said, skeptical of the low number of fraudulent accounts.

It was not clear if the problem could close the deal.The mask later he said, “Still Commit to acquisition.. “

Neither Twitter nor Mask responded to requests for comment on Friday.

The issue of fake Twitter accounts is not a secret.

In a quarterly submission to the SEC, even Twitter admits that it suspects the number of bot accounts is correct and that estimates may be low. “Because we have made important decisions in making this decision, estimates of fake or spam accounts may not accurately represent the actual number of such accounts, and of fake or spam accounts. The actual number can be higher than the estimate, “says Filing.

According to a review of Twitter’s filings with the US Securities and Exchange Commission, estimates of spambot accounts and similar terms expressing suspicion about them are available on Twitter quarterly and annually for at least two years long before Mask makes an offer. It was mentioned in the report. Known to him and his advisers.

Sarasilil, a professor of business journalism and financial communications at Quinnipiac University, said Musk seems to be using the number of spam accounts as an excuse to cancel transactions, as he is familiar with. ..

“It’s unreliable to claim that this is the reason he’s suspending trading,” Silver said. “This is not a new issue for him. It’s not just in his consciousness right now.”

On Friday, both Twitter and Tesla stocks fluctuated sharply in the opposite direction, Twitter stocks fell nearly 10%, and Tesla stocks Musk proposed to use to finance Twitter trading surged nearly 6%. bottom.

However, Tesla’s stock, which Mask was selling to fund some of Twitter’s acquisitions, has fallen since it became clear that social platforms were targeted by Mask.

These shares lost a quarter of their value last month and fell from about $ 1,150 in early April, when Musk confirmed that he had acquired a huge stake on Twitter, to about $ 762 on Friday.

“So it’s much more expensive for him to buy this company with his Tesla stock,” Silver said.

Forbes estimated net worth of Mask was $ 240 billion earlier this week, but as of Friday it had dropped to $ 223 billion.

Tesla shares may have benefited from Twitter bot accounts for years. Researchers at the University of Maryland have recently used such bots to generate hundreds of thousands of positive tweets about Tesla, which could boost its inventory in the years under pressure. I concluded.

Neither Tesla nor its supporters are responsible for these bots.

Investors had to do Weigh legal issues For Musk, and the acquisition of Twitter, it can be distracting from running one of the world’s most valuable car makers. The proposed deal continued to put pressure on Tesla’s stock, which had already fallen 16% this week.

The surge in Tesla stock prices before Friday’s opening bell showed growing suspicion that a Twitter acquisition might take place.

The mask is already Sold over $ 8 billion The value of his Tesla stock to raise funds for the purchase.

Initially, Musk promised to borrow $ 12.5 billion in Tesla shares as collateral to buy Twitter. He also borrowed $ 13 billion from banks and invested $ 21 billion in Tesla’s stock.

Last week, Musk stepped up its offer to Twitter with a commitment of over $ 7 billion from a diverse group of investors, including heavy hitters in Silicon Valley, such as Oracle co-founder Larry Ellison. bottom.

According to Filing, funding from new investors will reduce Tesla’s borrowing to $ 6.25 billion. Tesla’s stock could go from $ 21 billion to $ 27.25 billion.

Wedbush analyst Dan Ives, who follows both Tesla and Twitter, thinks Wall Street is likely to collapse due to Musk’s “strange” tweets, or Musk’s lower deal. He said he was trying to negotiate a price or was just away. Address a $ 1 billion penalty.

“Many people would see this as a mask to use this Twitter filing / spam account as a way out of this transaction in a rapidly changing market,” Ives wrote.

He finds it awkward to use Twitter instead of financial documents to make an announcement, saying, “I sent the entire transaction to a circus show, and I have many questions about the path of this transaction in the future, and the specific answer is. No, “he added.

Mask tweet the next day Social media company fired two top managers.. According to Twitter, the company has suspended most hires except for important roles, “reducing non-labor costs to ensure responsibility and efficiency.”

In a note sent to employees and confirmed on Twitter, CEO Parag Agrawal has begun investing “aggressively” to expand its user base and revenue, after which the company has reached a milestone in growth and revenue. Said not reached.

Chan reported from London. New York AP business writer Michelle Chapman contributed to this report.

Elon Musk: Twitter Transaction “Temporarily Pending” | Nationwide

Source link Elon Musk: Twitter Transaction “Temporarily Pending” | Nationwide

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