Elon Musk warns Twitter deal stuck without fake account proof

Share Us

586
Elon Musk warns Twitter deal stuck without fake account proof
18 May 2022
7 min read

News Synopsis

Elon Musk has suggested that a disagreement over the number of fake accounts on Twitter could jeopardise his $44 billion proposal to buy the social media network. Mr. Musk stated on Twitter that the agreement "cannot proceed forward" unless Twitter proves that less than 5% of daily users are bogus or spam accounts. Mr. Musk waived his right to "due diligence" in order to seal the sale, according to Twitter. The squabble has cast doubt on the takeover.

Analysts have theorised that Mr. Musk is attempting to renegotiate the deal's price or walk away. Mr Musk and the board of directors agreed to buy Twitter for $44 billion (£34.5 billion) in April, but he put the deal on hold last week while he looked into fake accounts. In tweets and public appearances, he has continued to stress the matter, implying that he may seek a cheaper price. 

Mr. Musk claimed on Tuesday that Twitter CEO Parag Agrawal had "publicly refused to present proof" that fewer than 5% of the company's accounts were fraudulent, and that the agreement "cannot move forward" until Mr. Agrawal did. Elon Musk has said that his bid to buy the social network is on hold while the exact number of spambots and accounts using it is investigated.

 

TWN Special