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Three Reasons Why the Twitter Deal is on Hold
Elon Musk’s $44 billion bid for Twitter has sparked a number of questions. Among them is whether the deal could still be completed or whether there’s reason to reconsider the terms. What are some possible reasons? This article examines some of the issues, including the 5% spam/fake accounts figure and possible SEC scrutiny. But it does not cover every angle. Here are three main reasons why the Twitter deal is on hold.
Elon Musk’s $44 billion bid to buy Twitter
Tesla CEO Elon Musk is putting his $44 billion bid to buy Twitter on hold due to concerns about the company’s content moderation. Musk, who criticized the company in May, said Twitter was not cooperative in helping him negotiate the deal. To see also : How to Let Twitter Display Sensitive Content. Twitter responded by saying they were acting in good faith and are providing everything he needs to complete the deal. However, one person close to the talks said that Twitter has been uncooperative in attempting to reach an agreement with Tesla.
The lawsuit could harm Twitter, which has already been under pressure from uncertainty surrounding its ownership. As it stands, some workers fear Musk will roll back safeguards against harmful content. Indeed, some predict an exodus from the company if Musk is able to buy the company. In addition, Musk has already brushed off Twitter executives and amplified users’ criticism of company policies and its lawyer. This uncertainty could further damage Twitter’s employee base.
Issues with 5% spam/fake accounts figure
Elon Musk, the CEO of Tesla, has put his Twitter takeover deal on hold as he wants more details on fake and spam accounts. His tweet prompted Twitter’s shares to plummet as investors wondered if Elon would pull out of the deal. Read also : How to Request Verification on Twitter. According to Reuters, Twitter claims that fake accounts make up less than 5% of its monetizable daily active users.
As the share price plunged, investors speculated that Musk may be walking away from the deal in search of a lower price. On May 6, Musk tweeted that the Twitter deal was on hold due to issues with the 5% spam/fake accounts figure. Musk and his team subsequently met with Twitter to discuss the matter. Musk has publicly denied the claim that 5% of its accounts are spam or fake, and called for more proof that he has a right to own Twitter.
However, Twitter is sticking by its 5% spam/fake account figure, and the company is committed to completing the deal according to the terms of the deal. In a tweet, Elon Musk said that he “does not believe the 5% spam/fake accounts figure,” although he did not offer further details. He also reiterated that Twitter suspends over half a million fake accounts each day.
Possible re-negotiation of deal
A possible re-negotiation of the Twitter deal seems to be on the horizon, as Elon Musk has reportedly been trying to get out of the deal. The founder has claimed that Twitter has violated his “right to information” in the deal. To see also : How to Get Twitter Followers Instantly Free. Musk is claiming that the company has cut back on senior staff and has cut a third of its recruiting staff, actions that are outside the “ordinary course of business.” If this is true, then he has the right to walk away from the deal.
Despite the recent comments of Elon Musk, Twitter has remained steadfast in their stance against re-negotiation. The company’s executives are not willing to cut the price even further. Musk has even tweeted that the deal has been done. It seems unlikely that Twitter will back down from the $43 billion deal. While Musk’s tweets are unfounded, it’s clear that the company’s executives aren’t ready to compromise.
Potential SEC scrutiny
Elon Musk’s tweets about his plans to buy Twitter have attracted the attention of the SEC. As the deal is nearing completion, the SEC is expected to look into Musk’s public statements to see if he misled investors or the market. However, Musk may not be facing this scrutiny yet. It may be a few years before he faces a formal inquiry. The SEC may be willing to let Musk’s tweets stand until it receives additional disclosures from him.
Nevertheless, the SEC has already asked Musk’s lawyers why he failed to update a regulatory filing regarding his Twitter stake. The form 13D must be amended every time the purpose of one’s shareholding changes. According to the SEC, Musk’s tweets regarding the Twitter deal have not been updated since April. The reason is that the SEC asked for a written explanation from Musk. In order to avoid a legal issue, the company must disclose the reasons for the amendment in its filings with the SEC.
