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Musk refrains from taking over Twitter. The billionaire was afraid of false accounts. The company’s share price drops

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Elon Musk got us used to sharing all the most important information with the world on Twitter. It was no different this time. On Friday, the billionaire, posted the following entry:

The contract on Twitter temporarily suspended pending data confirming the estimate that spam / fake accounts actually accounted for less than 5 percent. users

At this point, Musk refers to a report published on Monday in which the company announces that that in the first quarter of this year. fake accounts and spam bots make up less than 5% of active users of the platform that can be monetized.

Musk, who has promised to focus on removing bots and spam from the platform after the Twitter takeover, appears to disbelieve this estimate – hence his demands for source data disclosure.

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Twitter Investing

At the same time, his entry caused a storm on the stock exchange. Twitter’s stocks in pre-session trading lost up to 20 percent on Friday., falling to less than $ 35. They were trading at $ 45.08 at the close of the New York Stock Exchange on Thursday.

Recall that the billionaire was going to buy Twitter out after 54.2 dollars per share which translated into a total amount of $ 44 billion. Once the deal is finalized, Twitter would cease to be a publicly listed company. So Musk would write a story in his own way, because it would be perhaps the first time that a large social media platform has been privatized.

Now that the deal has been put on hold, investors cannot be sure whether Musk will deliver on his earlier promises, hence the great uncertainty that has been swept through the stock market for several hours – even before the start of the regular Wall Street session.

Can Elon Musk withdraw from the transaction?

Documents released in late April that attached to the Twitter takeover deal said both Musk and current investors could pull out of the deal with a $ 1 billion fine.

Will Elon Musk decide to make such a move? It’s hard to make a judgment today. On the one hand, it seems that Tesla’s plan to take over Twitter is not just another marketing gimmick that the billionaire is famous for. On the other hand – in the past, Musk has shown many times that he is a completely unpredictable figure.

It’s worth noting that Musk has in the past had reservations about precisely those segments on which Twitter’s entire financial model is based. He criticized the Twitter advertising algorithm, as well as the activities carried out by website moderation.

Moreover, in one of the tweets he published, Musk even suggested that Twitter should be ad-free. “The corporate power to dictate policy is much greater when Twitter depends on ad money to survive,” he said. Interestingly, this post was deleted a few days ago.

Source: Gazeta

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