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Elon Musk raises prospect of lower price for Twitter deal

Elon Musk said his agreed $44 billion purchase of Twitter “cannot go ahead” until the social media platform provides evidence of the number of fake accounts, just hours after he warned that the takeover could fail.

Musk lashed out at Twitter CEO Parag Agrawal again Tuesday morning for refusing to provide evidence of the number of fake accounts. He tweeted that the “deal can’t go ahead until it does.”

His tweet came just hours after the Tesla boss admitted at the All-In Summit in Miami that a lower price was “out of the question,” fueling Wall Street fears he was reconsidering his bid for the company .

On Friday, Musk said on Twitter that he would go ahead with the deal.on hold‘ over concerns that there were more fake accounts on the platform than the ‘less than 5 percent’ the social media company claims.

has musk fueled speculation on Wall Street that the CEO of Tesla and SpaceX is trying to renegotiate the deal or pull out altogether, despite saying he still stands by the transaction.

Asked Monday if his Twitter purchase would go through, Musk said, “It really depends on a lot of factors here. I’m still waiting for a logical explanation for the number of fake or spam accounts on Twitter. And Twitter refuses to tell us. That seems a strange thing.”

He said he believes at least 20 percent of the accounts on the network are fake and that the percentage could be as high as 90 percent.

Musk faces a $1 billion termination fee if he walks away, although Twitter can also sue him to force him to go through with the deal unless he can point to important information that wasn’t disclosed at the time of the agreement .

Musk said it could be “a material adverse misrepresentation” if the number of bots is significantly higher than the 5 percent reported by Twitter. “As if you said, OK, I’ll agree to buy your house. They say the house has less than 5 percent termites. That’s an acceptable number. But if the right percent turns out to be 90 percent termites, that’s not okay.”

Musk joined the fake account issue after Twitter filed a regulatory filing earlier this month, in which Twitter reiterated a standard warning that its estimate “may not accurately reflect the actual number of ‘fake accounts’ and the actual total “could be higher.” “.

The timing of his intervention in a long-standing issue raised concerns on Wall Street that he might use the issue as an excuse to resume negotiations.

Shares of Twitter fell nearly 8 percent on Monday, remaining 30 percent below the $54.20 a share Musk was willing to pay for the company. Most of the decline came ahead of reports of the billionaire’s comments about possibly paying a lower price.

Earlier Monday, Musk challenged Agrawal on the platform after the Twitter boss published a lengthy thread outlining the methodology behind his estimate that spam makes up less than 5 percent of his user base, arguing that the figure was from third parties Parties cannot be accurately identified without access to data such as IP addresses, geolocation and phone numbers.

Agrawal wrote, “We do not believe that this specific estimate can be performed externally given the critical need to use both public and private information (which we cannot share).”

He added that “each quarter, the margins of error in our estimates give us confidence in our public statements.”

“We gave Elon an overview of the appraisal process a week ago and look forward to continuing the conversation with him and all of you,” Agrawal wrote on Twitter.

Musk responded with a pile of poop emoji. In a second tweet, he wrote: “So how do advertisers know what they’re getting for their money? This is fundamental to Twitter’s financial health.”

Musk also said at the Miami event that he was open to the idea of ​​turning Twitter into something in the West akin to WeChat, the all-encompassing “super app” in China that allows users to shop in a single device, Texting and posting on social media app.

“Such an app would be really useful [in the west]Musk said, adding that he’s not sure if Twitter should become that superapp or be built from the ground up. But one thing was clear to him: “This thing has to exist.”

Elon Musk raises prospect of lower price for Twitter deal Source link Elon Musk raises prospect of lower price for Twitter deal

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