Elon Musk’s Twitter Acquisition on Hold

There is now a series of doubts as to whether Elon Musk’s Twitter acquisition will actually take place. In a recent statement, Tesla’s chief questioned the amount of fake accounts on Twitter. This has led to an unexpected downturn in share price and several rumours about the supposed acquisition.

This questioning over fake accounts came just a day after information about significant reforms taking place at Twitter. These include a halt in the recruitment of new employees, cost-cutting measures and the resignations of two senior leaders at the social media company.

Elon Musk explained that the deal was being kept on hold, due to details related to the filing of the number of fake accounts. The declared amount of fake accounts on the social media network represents just under five percent of the total users. Elon Musk has asked the company to prove and substantiate this figure. The hit to Twitter’s stock was significant, with a reduction of twenty percent in value. 

Following the issue raised in relation to fake accounts, he tweeted two hours later, to showcase his commitment for the acquisition to go through.

If the deal is to go through, one of his objectives is to eliminate spam bots and authenticate human accounts. Such a move would significantly improve the experience of the social media platform.

Twitter made a statement in relation to the filings which mention daily user activity and spam or fake accounts. In the data provided, it was stated that less than five percent of these active users were fake or spam accounts. It was further clarified that judgement was applied when providing this figure, indicating that it may not accurately represent the actual number. The company added that the actual number may be higher than the one quoted.

One can argue that the company requires a change in its vision, especially when comparing the growth results with other social media platforms such as Meta and TikTok. The Chief Executive Officer of Twitter, Parag Agrawal, stated that he expects the deal to go through, however the company must be prepared for all scenarios. With the billionaire Elon Musk at the helm, Twitter could be in for some exciting times. His latest move has caused a ripple effect in the technology and financial world.

Elon Musk will need to pay one billion dollars if he decides to cancel the agreement. This is a fee that he had agreed to. What do you think will be the outcome? Let us know your views in the comments section below.

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