Elon Musk buys a big chunk of Twitter
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@jon-nyc said in Elon Musk buys a big chunk of Twitter:
Pass the popcorn, George.
Elon Musk Says Twitter Deal Is on Hold,
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Mr. Musk said in a tweet early Friday. He linked to a May 2 Reuters report about a recent Twitter securities filing with those statistics.
Twitter shares were down nearly 20% in premarket trade. Mr. Musk disclosed a 9% stake in the social-networking website last month and sought to buy the remainder of the company at a price of $54.20 a share. He said he had lined up $46.5 billion of funding for the transaction.
Mr. Musk plans to bring a commitment to a more hands-off approach on speech moderation to a company that has struggled to reconcile freewheeling conversations with content that appeals to advertisers.
Some investors saw the pause in the acquisition as a potential sign that the deal may not go ahead.
“I think he’s potentially seeding the ground for pulling out of the deal. That’s certainly the market’s interpretation,” said Michael Hewson, chief markets analyst at CMC Markets. “But we’ll have to wait and see, it’s a bit strange to go through all that legwork and pull funding together and then suddenly put it on hold. It is a rather strange development.”
The move comes a day after Twitter said it was pausing hiring and looking to cut costs as it grapples with disruptions in the digital advertising market from global economic turmoil and the war in Ukraine. Across the tech industry, companies are cutting staff and spending or slowing hiring.
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@Klaus said in Elon Musk buys a big chunk of Twitter:
What exactly is the condition in the contract about which Musk is talking here?
It's almost as though he's not particularly trustworthy.
Proud supporter of Plan 2525. Everything you think, do and say will be in the pill you took today.
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@Doctor-Phibes said in Elon Musk buys a big chunk of Twitter:
@Klaus said in Elon Musk buys a big chunk of Twitter:
What exactly is the condition in the contract about which Musk is talking here?
It's almost as though he's not particularly trustworthy.
Well, even if he is untrustworthy, it will cost him no more than the $1 Billion break-up fee stipulated in the buy-out agreement.
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I'm kind of left with the impression of people playing rather childish games, and spending obscene amounts of money in order to do so.
Proud supporter of Plan 2525. Everything you think, do and say will be in the pill you took today.
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@Doctor-Phibes said in Elon Musk buys a big chunk of Twitter:
I'm kind of left with the impression of people playing rather childish games, and spending obscene amounts of money in order to do so.
And shareholder class action lawsuits ensue …
It looks to me that the way this is going, it increases the likelihood of Elon and Twitter and maybe even Tesla getting hit by shareholder class action lawsuits regardless of whether Elon follows through with the acquisition of Twitter.
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@Doctor-Phibes It sounds as if he’s verifying value based on real person accounts being more the 95%. Why would that be a problem?
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@Ivorythumper said in Elon Musk buys a big chunk of Twitter:
@Doctor-Phibes It sounds as if he’s verifying value based on real person accounts being more the 95%. Why would that be a problem?
He might be, but he's pulled a few tricks in the past which have done funny things to share prices.
I really don't have any issue with him buying Twitter at all - I suspect it won't make much difference either way.
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Elon publicized the method he wants to use to determine the fraction of accounts that are "fake" on Twitter. Other experts panned his preferred method.
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@Axtremus from the article
"He also warns that the number of inauthentic accounts can appear higher or lower in different corners of Twitter depending on topics being discussed. For example, more inauthentic accounts tweet about politics, cryptocurrency, climate change, and covid than those discussing non-controversial topics like kittens and origami, "
I would have thought that would have been quite obvious. LOL
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https://www.reuters.com/markets/deals/twitter-committed-elon-musks-44-billion-deal-2022-05-17/
The narrative seems to be that Elon did no “due diligence” before signing the deal.
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Half of Joe Biden's Twitter Followers Are Fake, Audit Reveals
Almost half of President Joe Biden's current 22.2 million followers on Twitter are fake accounts, according to an audit tool provided by software company SparkToro.
SparkToro's tool found that 49.3 percent of accounts following the official @POTUS Twitter account are "fake followers" based on analysis of a number of factors, including location issues, default profile images and new users.
Tesla CEO Elon Musk, who is currently trying to buy Twitter, has expressed concerns about the number of fake accounts and a potential crack down could see users such as Biden lose a huge number of followers.
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The picture gets murkier as time goes on. The purchase may not happen at all.
