In April Elon Musk made an offer to acquire Twitter for $ 54.20 per share (valuing the company at $ 44 billion). However, the deal was suspended after Musk expressed doubts that the spam / fake account rate is less than 5%, Twitter claims. “This deal can’t go on” until Twitter shows evidence for the below 5% number, Musk tweeted.
Musk says the original deal was concluded based on Twitter’s SEC filings, which claim that fake accounts make up 5% or less of the active user base. However, if that proportion is higher, it will have an impact on the company’s bottom line.
20% fake / spam accounts, while 4 times what Twitter claims, could be * much * higher.
My offer was based on the accuracy of Twitter’s SEC statements.
Yesterday, the Twitter CEO publicly refused to show the evidence
This agreement cannot go on until it does.
– Elon Musk (@elonmusk) May 17, 2022
“You can’t pay the same price for something that’s far worse than they claim,” Musk said at an All-In Summit 2022 conference in Miami, suggesting he might ask for a price cut if Twitter can’t prove his numbers with his. satisfaction.
Musk believes at least 20% of Twitter users are fake and said the Twitter CEO refused to show evidence for the 5% estimate. In response, CEO Parag Agrawal published a long thread explaining how the estimate was calculated.
“Unfortunately, we do not believe that this specific estimate can be made externally, given the fundamental need to use both public and private information (which we cannot share). Externally, it is not even possible to know which accounts are counted as mDAUs on any given day, ”writes the CEO.
Twitter meanwhile claims it is committed to closing the deal at the agreed price of $ 54.20 per share.
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