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Officials at the US Securities and Exchange Commission have to raise their eyebrows today at Elon Musk’s latest antics on his soon-to-be-buyed favorite mouthpiece.
A tweet this morning saying its $44 billion deal to buy the social media company was “temporarily on hold” caused Twitter’s shares to fall about 20 percent. Musk said these are “pending details that support the calculation that spam/fake accounts actually make up less than 5 percent of users.”
The implication was that Twitter might underestimate the number of fake accounts, make them worth less than what it had offered and give it good reason to renegotiate or go out of business.
However, another tweet two hours later said he was “still committed to the acquisition.” The shares reduced their losses to 11 percent.
Our reporters say The fake account estimate was included in the company’s quarterly filing last week, but the same calculation has also been reported in every quarterly filing since 2014.
Twitter is now trading at a 26 percent discount to the $54.20 per share price Musk was willing to pay in mid-April, signaling that investors don’t think a deal will come anywhere near that price and may not happen at all.
says Alphaville Not only could that trigger the deal’s material adverse effects clause and void Musk’s $1 billion disruption fee, it could put Twitter in a very bad position.
It has already been a turbulent 24 hours for the company. Previously, she had announced an immediate hiring freeze, cost-cutting measures and the Departure of two senior executives.
The Internet of (Five) Things
1. Tech stocks rebound at the end of a terrible week
Tech stocks break back today with the Nasdaq Composite closed nearly 4 percent higher, but argues Richard Waters There are many reasons to believe that the recent car accident is not over yet. says John Thornhill The rules of the game may have changed fundamentally, with Uber’s boss saying shareholders now need to be “shown the money” in terms of cash flow and profits.
2. Bitcoin is back too
Bitcoin was over $30,000 again on Friday after a terrible time this week.
The $1.3 trillion cryptocurrency industry was also hit by one of its biggest challenges on Thursday, as stablecoin Tether — a critical cog in the market — not maintained its connection with the US dollar. Alphaville is watching how stablecoins destabilize crypto and we have it too an explainer on their meaning. Lex says the size of the stablecoin industry — $180 billion (as of March).according to the Federal Reserve – making it a source of potential systemic risk. Our lunch with the FT this week is with Sam Bankman-Fried. the founder of crypto exchange FTX.
3. VCs seek high NFT returns
Venture capitalists are pouring millions into digital art, virtual land, and online collectibles, the new frontier for investors seeking big returns in crypto. Andreessen Horowitz and Paradigm, two of the largest cryptocurrency venture fund managers, have started investing directly in non-fungible tokens (NFTs). reports Miles Kruppa. FT Weekend considered
Jason Li’s from Los Angeles Art collection of 1,000 NFTs.
4. Son raises SoftBank’s umbrella
“We put up an umbrella when it rains,” Masayoshi Son said this week. “Now is the time to strengthen our defence.” Here is our analysis the more reticent and humble SoftBank founder after announcing a $27 billion loss on his Vision Fund investments.
5. Money, it’s a gasoline
Grab the money with both hands and make a stash. Pink Floyd, known for hits like “Money,” could soon be $500 million richer with Warner Music and KKR-backed BMG compete for purchase the band’s entire back catalogue. Lex says Such assets, which are effectively annuities, are the opposite of the flashy artists behind them.
Tech Tools – Google’s bevy of gadgets
Google’s bevy of hardware announcements at its I/O developer conference this week included new phones, a watch, earbuds, and a tablet. There was a first look at the Pixel 7 and 7 Pro smartphones, but the Pixel 6a will be available earlier with pre-orders starting July 21 for $449. Pixel Buds Pro earbuds will be available at the same time. In the fall comes the Google Pixel Watch, the first fully Google-designed smartwatch with Wear OS, Fitbit integration, and Assistant access. A Pixel tablet has been shown but won’t be available until next year. The Guardian has a synopsis of all gadgets and improvements to the Android 13 operating system coming this summer.
Musk tweets takeover doubts | Financial Times Source link Musk tweets takeover doubts | Financial Times