🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Elon Musk Puts the Twitter Deal on Hold Upto Spam Accounts Confirmation

Published 13-05-2022, 11:55 pm
© Reuters Elon Musk Puts the Twitter Deal on Hold Upto Spam Accounts Confirmation

On Friday, Elon Musk revealed that his $44 billion proposal to acquire Twitter (NYSE:TWTR) is on hold until he gets confirmation that spam or false accounts on the micro-blogging service make up fewer than 5% of its user base. A 20 percent drop in the stock price was seen in premarket trading. Twitter projected that less than 5% of its monetizable daily active users were fraudulent or spam accounts during the first quarter.

Removing Spam Bots One of the Top Goals

In the first three months, the social media business offered ads to 229 million users. Musk, the world’s wealthiest man and CEO of Tesla, has previously said that removing “spam bots” from the platform would be one of his top goals. Musk’s campaign to overhaul Twitter has focused on shutting down phony accounts. As part of his announcement to acquire Twitter, he said he wants to eliminate spam bots, verify all users, and open-source its algorithms.

Doubts about Musk’s takeover of Twitter have increased in recent days. During Thursday’s trading session, the spread on the transaction, which indicates how much Wall Street thinks the acquisition will be completed, increased to $9.11 from $8.11. Musk’s attempt to buy Twitter for $54.20 was at its widest level since he revealed a roughly $7.1 billion financial commitment last week.

Musk’s newest post came only a few hours after Twitter said it was halting new hires as cost-cutting measures before the sale. Twitter’s top two executives are also leaving the company. CEO Parag Agrawal has requested Kayvon Beykpour, director of consumer product, and Bruce Falck, head of revenue product, to leave the firm, the two executives said in separate public statements.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.