More Delays In Elon Musk-Twitter Deal? Bot Accounts A Sticking Point

Ambar Warrick
May 17, 2022 Updated July 18, 2022
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Musk-Twitter deal currently on hold

Elon Musk said on Tuesday that his Twitter takeover cannot proceed until the social media platform is able to prove that less than 5% of its users are bots.

Musk claimed that 20%, or even more of Twitter’s accounts are likely to be bots- far higher than the 5% posited by Twitter in a recent filing.

The Tesla CEO had temporarily paused the $44 billion deal with Twitter last week, citing concerns over the number of bot accounts. This comes after Musk was able to solicit over $27 billion in funding for the takeover.

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Twitter deal on indefinite hold?

In a tweet on Tuesday, Musk further questioned the validity of Twitter’s 5% claim. He said that the takeover offer for the social media platform was made on the belief of Twitter’s SEC filings “being accurate.”

Musk also claimed that Twitter CEO Parag Agrawal had publicly refused to show him proof of the 5% claim.

This deal cannot move forward until he does, Musk tweeted.

Still, Musk had said earlier that he remained committed to taking Twitter private. Considering that he has secured backing from several investment houses and banks, this may be the case.

Cleansing the site of bot accounts is one of the Tesla CEO’s top priorities for the social media platform. He also intends to possibly integrate cryptocurrencies into the platform, and make it open sourced.

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Is Musk fishing for a discount?

Musk’s delay tactics have also fuelled speculation that the world’s richest man may be fishing for a lower takeover price. Twitter’s shares have slumped over 20% since he put the deal on hold last week.

Shares are now trading at $37.39- well below Musk’s offer of around $54 per share. This may give him more leverage in the deal.

Recent reports also suggest the Tesla CEO is open to buying the platform at a lower price.

 

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.