Tesla CEO Elon Musk and his team are preparing their own audit of 100 Twitter subscribers to check how many bots and accounts are spamming.
Earlier, citing regulations from Twitter a week ago, Musk said he wanted to suspend the deal to make sure fake or spam accounts accounted for less than 5 percent of the company’s 229 million users in the first quarter.
On Thursday, Musk tweeted that his $ 44 billion Twitter acquisition had been suspended as he investigated the company’s internal audit.
On Friday, he followed suit, saying: “To find out, my team will make a random sample of 100 Twitter subscribers. I invite others to repeat the same process and see what they discover … ‘
He later joked: “Boots are angry that they are being counted.” The official Twitter account, @Twitter, has 61.7 million subscribers, which means Musk has a large group to choose from.
The world’s richest man has also said he is still looking to acquire.
If Twitter reports are accurate, it will mean that there are less than 11.4 million fake accounts targeted for advertising. Mask has 92.4 million Twitter followers.
Tesla CEO Elon Musk (pictured) was spotted Thursday night at a dinner at the Beverly Hills Hotel, hours before he suspended the purchase on Twitter.
Musk noticed him being escorted by three guards to the Beverly Hills Hotel for dinner.
Musk seemed to be stuck to his phone, as a few hours after the party he shocked Wall Street by announcing that his deal to buy Twitter would be suspended.
Trump, commenting on his platform Truth Social on Friday, suggested that Musk is looking to agree on a better deal to buy Twitter after agreeing to pay $ 54.20 per share.
The former US president said the only reason Tesla’s CEO had not yet terminated his Twitter deal was a $ 1 billion fee.
“There’s no way Elon Musk will buy Twitter at such a ridiculous price, especially since realizing it’s a campaign based mostly on bots or spam accounts,” Trump wrote, adding injections to a rival social media campaign.
“If it weren’t for the ridiculous bill for the $ 1 billion gap, Ilona wouldn’t be here for a long time,” he added.
The richest man in the world seemed to be glued to a phone when he entered a building accompanied by three guards
Musk said he is still committed to buying the social networking company for $ 44 billion pending an investigation into the number of spam accounts on the site
At the party Musk was in a dark cap, green shirt and black pants and shoes
If he wins the deal, Musk risks paying $ 1 billion for the Twitter gap, and could also be sued by a social media company for breach of contract.
Former President Donald Trump was among many who believed Musk had postponed a ransom in hopes of agreeing on a better deal
This week, Musk also sparked a heated debate after saying he would allow Trump to return to Twitter if and when he takes the helm, according to his previous statements that he planned to err on the side of free speech rather than bans and censorship.
Trump has repeatedly stated that he has no plans to return to Twitter after he was removed from the platform after the January 6 riot in the Capitol.
Musk’s unexpected tweets earlier Friday led to a drop in Twitter shares in the previous market as analysts speculated that Musk was trying to negotiate a lower price for the deal or abandon it altogether.
Twitter CEO and board member Parag Agraval insists he still expects the deal to go through as the company prepares to hand over power.
In a long topic on Twitter on Friday, Agraval wrote, “While I’m waiting for the deal to close, we need to be prepared for all scenarios and always do what’s appropriate for Twitter.”
Agraval also called for his move Thursday to fire two top Twitter executives, saying he was “responsible for leading and managing Twitter, and our job is to create a stronger Twitter every day.”
If Musk abandons the deal, Musk will not only be on the hook for $ 1 billion for the cancellation, but could also be sued on Twitter for breach of contract.
This was stated by a senior lawyer for transactions on transactions and acquisitions CNBC that Twitter may also sue Mask if he tries to drop the deal simply because he felt he overpaid.
Like Trump, others have suggested that Mask’s unexpected move Thursday was the result of an attempt to reconsider the best deals as Twitter shares fell since a buyout of $ 54.20 per share last month.
“This is probably a tactic of negotiating on behalf of Ilona,” Tony Sakonagi, a senior analyst at Bernstein, told CNBC on Friday. “The market has fallen sharply. He probably uses the view of real active users as a negotiation process. “
Trump, pictured last week, said it was ridiculous for Mask to pay $ 54.20 per share. Musk said he would allow Trump to return to Twitter as soon as he becomes CEO
Twitter CEO and board member Parag Agraval (left) insists he is still waiting for the $ 44 billion acquisition of Ilona Maska to close
Shares of the social media company fell 25 percent in trading this morning, continuing a massive downward trend after the April 25 Twitter board accepted its takeover bid.
It is unclear what legal implications his tweet had, and some analysts were baffled by the fact that he announced the move on Twitter rather than in regulatory documents.
Wedbush analyst Dan Ives called Mask’s tweet “weird” and said he was “now posting the whole deal to a circus show with lots of questions and no specific answers.”
“Many will see this as Musk’s use of this Twitter feed / spam account as a way to get out of this deal in a highly volatile market,” Ives wrote in a note.
“If Musk still decides to follow the path of the deal, there will probably be a clear negotiation on the table,” he added.
Twitter shares have been falling since April 25 as a sign that Wall Street is unsure the deal will be completed at the announced price of $ 44 billion
Tesla shares have come under pressure amid concerns that Mask will have to sell more of its holdings in the company to fund its takeover on Twitter
Meanwhile, shares of Tesla, against which Musk secured $ 6.25 billion in funding, rose about 5 percent earlier Friday.
Tesla shares have plummeted and fell 28 percent over the past month amid investor concerns that the Twitter deal will split Mask’s attention and that funding problems will force him to give up most of his Tesla shares.
Declining Tesla shares have raised concerns about Mask’s ability to fund a deal on Twitter. At Thursday’s closing price, Musk would have to lay out more than a quarter of his Tesla shares to secure a $ 6.25 billion margin loan.
Analysts have wondered why Musk has suddenly expressed concern about Twitter’s estimate that 5 percent of accounts are fake, an estimate the company has included in regulations for years.
Suzanne Streeter, an analyst at Hargreaves Lansdown, said: “This 5% figure has not existed for some time. He obviously would have seen it already … So it could be more part of a price reduction strategy.
“Many in the company will be very upset, given that a number of senior executives have already been fired,” she said.
It was also revealed yesterday that Tesla’s CEO’s purchase on Twitter was being investigated by US regulators after he delayed the purchase report – and thus failed to give enough warning that an takeover offer was imminent.
The 50-year-old’s first step toward buying Twitter was his purchase of a 9.2% stake in the technology company in mid-February.
But he did not disclose his purchase to the Securities and Exchange Commission (SEC) for at least 10 days, April 4th.
Any investor who crosses the 5 percent stake must file a form with the SEC within 10 days. This serves as an early signal to stakeholders that a major investor may seek to control the company.
Mask’s April 4 application also described his share as passive, meaning he had no plans to go through Twitter or influence his leadership or business.
However, the next day he was offered a position on the board of Twitter, and a couple of weeks later the richest man in the world made a deal for $ 44 billion to buy the social media giant.
The SEC investigation was first reported on Wednesday by The Wall Street Journal.