Elon Musk, CEO of Tesla, Inc., said on the 16th that he may ask for a reduction in the purchase price of Twitter. He pointed out that the percentage of fake accounts could be at least four times higher than the company explained.
Musk said yesterday that the $ 44 billion deal was temporarily suspended until more information about spam and fake accounts was available.
“You can’t pay the same amount for something that is far worse (quality) than the claim,” he said. When asked if it was possible to buy at a different price than the original agreement, he replied, “It’s not out of the question.” “The more questions I ask, the more I’m concerned,” he said.
Twitter shares widened their decline after Mr. Musk’s remarks were heard, closing at $ 37.39, down 8.2%. It is well below the acquisition price of $ 54.20.
Twitter CEO Parag Agrawal posted on Twitter today that the percentage of spam accounts according to internal estimates has been “well below 5%” for the past four quarters. The company’s estimates have been at the same level since 2013.
Agrawal argued that Twitter’s internal estimates cannot be reproduced externally because both public and private information must be used to identify spam accounts.
“So how can advertisers know what they’re getting for the money they’re paying? That’s fundamental to Twitter’s financial health,” Musk said.
Cheyenne Cox is a news report covering multiple Market and economy News. She is creative and highly professional writer. Cheyenne holds a degree in communication and journalism and has also a Diploma in digital marketing. She belongs to south Africa who has also lived in Europe and is currently based in the US.