Elon Musk’s deal to buy Twitter in jeopardy: report

0

(MENAFN-AFP)

Shares of Twitter fell Thursday night after a Washington Post report that Elon Musk’s $44 billion deal to buy the social media giant is in jeopardy.

The world’s richest man has previously expressed doubts and even hinted that he may walk away from the deal due to concerns over what he sees as an abundance of fake accounts.

According to the Post, however, Musk was unable to determine the percentage of Twitter accounts that are not authentic, despite having access to internal data.

While Musk has previously made comments questioning his commitment to the deal, the latest report cites an unnamed source as saying his team is preparing for a “change in direction”.

Twitter shares, which were already trading below Musk’s proposed price, fell about 4% on news from aftermarket trading.

“The Twitter soap opera is clearly coming to some sort of endgame over the next few months as Musk makes the decision to stay (with a lower price) or leave,” Wedbush analyst Dan Ives said in a note to the media. investors.

“The Twitter deal has clearly caused chaos on Twitter.”

Ives expected Musk to reveal details of his fake account issues in the coming weeks.

At the Qatar Economic Forum last month, Musk said his Twitter buy was still being held back by “very important” questions about the number of fake users on the social network.

“So we’re still waiting for a resolution on this issue and it’s a very important issue,” the Tesla car and SpaceX exploration chief said via a video link to the gathering.

Twitter executives have firmly claimed that less than 5% of accounts are fake, with Musk saying he thinks the number is much higher.

Musk said there are also questions about Twitter’s debt.

The odds of Musk buying Twitter as originally negotiated are slim, Ives said.

Wedbush has pegged the possibility of the deal happening at less than 60%, leaving the door open to the possibility that Musk will try to get away with paying only the required $1 billion break fee.

MENAFN07072022000143011026ID1104498734


Legal disclaimer: MENAFN provides the information “as is” without warranty of any kind. We assume no responsibility for the accuracy, content, images, videos, licensing, completeness, legality or reliability of any information in this article. If you have any complaints or copyright issues related to this article, please contact the provider above.

Share.

Comments are closed.