Three people familiar with the matter claim that Elon Musk’s Deal to Buy Twitter is in trouble. Musk’s camp has concluded that Twitter’s spam account figures are not verifiable. today we will talk more about the twitter deal and why reports are saying that Elon Musk’s deal to buy Twitter is in peril and is the reason behind this news.
Actually, Musk’s team has stopped discussing funding for the $44 billion deal. One of the people stated that this included a party identified as a possible backer. Due to the sensitive nature of ongoing discussions, the people spoke under the condition of anonymity.
Recent weeks have seen investors’ talks slow as Musk’s team has raised concerns about the recently received “Fire Hose” data from Twitter. This is a collection of data that was sold to corporate customers. The people stated that Musk’s team is unsure about the spam numbers, which indicates they don’t have enough information to assess Twitter’s potential as a business.
One person said that Musk’s team now cannot verify the figures of spam accounts on Twitter, and this means it will likely take drastic measures. Although they didn’t specify what that change was, the person stated that it was likely Musk’s team would change direction soon.
Elon Musk has a growing list of investors for Twitter’s takeoverMusk may not be able to get out of the deal because of spam accounts. Twitter’s share price fell dramatically since Musk’s April takeover bid, giving the impression that he may be overpaying. Musk is also the CEO of two major companies, SpaceX and Tesla, as well as a few start-ups.
However, Musk cannot walk away from the agreement because of the terms. Musk has committed to the deal unless there is a major disruption to Twitter’s business. Legal experts doubt that the bot issue would be eligible. Twitter, which originally opposed Musk’s takeover bid for the company, would be less strong if it falls apart than when Musk bought the stake. Experts expect Twitter to continue to fight for its completion. Twitter has stated that it will complete the deal. Musk could still be responsible for the $1 billion breakup fee even if he convinces a judge not to allow him to walk away.
Brian Poliakoff, the Twitter spokesperson, declined to comment but referred to a June statement by the company.
Twitter stated in a June statement that Twitter would continue to share information with Musk to complete the transaction according to the merger agreement’s terms. We believe that this agreement is in all shareholders’ best interests. We plan to close the transaction and enforce our merger agreement at the agreed terms and price.”
Musk did not reply to a request for comments.
Musk shocked the social media world with his unprecedented private offer to take the company. He claimed he could grow Twitter and make it more open and politically neutral. Musk said he would allow former President Donald Trump to return to the service and claimed that its content moderation practices violated free speech. Musk signed the deal without the right to examine the company’s finances.
Soon after, however, doubts arose about whether he would follow through. He was deeply affected by the global tech stock sell-off, which had severely reduced his net worth. However, he leveraged that to secure commitments for the debt required to purchase Twitter.
Musk’s enthusiasm to complete the deal has been in question since May when he stated that the agreement was “On Hold” until he could verify whether Twitter’s long-held statement that less than 5% of accounts are spam or bots was true. While he accused Twitter of withholding data, the company claimed it acted in good faith and provided all the terms.
“Twitter is not cooperative,” stated a person familiar with the discussions. He spoke on condition of anonymity due to the sensitive nature of the talks. So it seems that Elon Musk’s Deal to Buy Twitter is in trouble.
Musk can use bots to his advantage, driving down Twitter’s stock price and possibly forcing Twitter into renegotiations at a lower price.
According to Carl Tobias (law professor at the University of Richmond), Musk probably understands the difficulties of backing out at this stage. This prompts him to seek legal reasons to justify his exit.
Musk raised the bot issue and said that Twitter’s figures could be a “material adverse statement.” This likely refers to a clause in his contract that allows him to cancel the deal in case of a significant change to the business.
Elon Musk warns Twitter staff that harassment will force people out of service. Tobias stated, “I believe it’s an excuse.” Tobias pointed out Musk’s lack of diligence in accepting the deal. He said, “It does seem that it undercuts many arguments he could attempt to make other.”
The debate about bots on Twitter doesn’t seem new and has been part of the public discussion around the company for many years. Musk often tweets about his frustration at spammers and bot accounts. In April, he said he wanted to “defeat spambots or die trying!” via his Twitter bid. Sometimes, outside researchers have suggested that the number of spam accounts and bots could be higher than Twitter estimates. Experts cannot give definitive answers due to the rapid changes in the techniques used for creating fake accounts.
Twitter defends its measurement of unwanted accounts in a news briefing Thursday morning.
Twitter stated that it collects a sample from the “Monetizable average daily users” every three months. This is the user base that the company feels most comfortable charging advertisers to reach. It examines the sample manually to verify that they are real. It stated that it is always satisfied that the total falls below the threshold of 5 percent.
Twitter doesn’t ban all bots. This includes accounts that post photos of otters at a particular hour or temperature in a certain location. It looks for indicators that indicate fake or coordinated spam activity. This includes the mass creation of accounts and coordination among humans to amplify a tweet, set, or topic artificially. According to the terms of the briefing, experts could not be quoted or cited directly.
Apple introduces a new security feature that blocks government spywareTwitter has been in chaos since Musk’s acquisition, causing rifts among employees and anxiety for executives. Fearful that Musk will remove the protections Twitter has in place to protect harmful content, some workers have begun looking for new jobs. They also predict an exodus of employees if Musk buys the company.
Musk already took on Twitter executives, shaming them for their policies and amplifying those criticizing the top lawyer.
Even if the deal is not reached, Twitter has been through controversy, employee unease, and turbulent stock performance for months, and it’s unlikely to rebound easily.
One person familiar with the matter said, “No matter what: The Company is in Play Now.” This was according to a source who spoke to The Post in May. “I don’t believe it’s a situation where Elon walks out, and things can return to normal.
Article source: Internet/media
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is Elon mask twitter deal in danger?
As of now, we can not say very clearly that Elon Musk’s Deal to Buy Twitter is in trouble. Musk’s team has stopped discussing funding for the $44 billion deal. One of the people stated that this included a party identified as a possible backer. Due to the sensitive nature of ongoing discussions, the people spoke under the condition of anonymity.
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