Elon Musk: Twitter Deal Not Moving Forward Until His Conditions Are Met

Elon Musk stated at the “All In” tech conference in Miami on Monday that he estimates 20% of users on the network are fraudulent or spam accounts, which may be why the Tesla CEO won’t rule out the prospect of a deal modification that would compel him to pay a lesser price.

Elon Musk: Twitter Deal Not Moving Forward Until His Conditions Are Met

On Tuesday, Elon Musk expressed concerns about the impact of his $44 billion buyout of Twitter, stating that “this deal cannot move forward” unless he receives more information regarding the level of spam and bogus accounts on the network.

Elon Musk has stated that his $44 billion acquisition of Twitter would be postponed until he has a better understanding of how many accounts are fraudulent. In a filing earlier this month, Twitter calculated that less than 5% of its marketable daily users (mDAUs) within the first quarter were fraudulent or fraudulent accounts.

The Tesla CEO’s statement comes a day after he warned he could attempt to haggle a better rate and blasted Twitter for allegedly misleading him about the amount of bots on the network; a clear indication that he may try to back out of the arrangement.

However, Twitter filed a proxy statement Tuesday urging that shareholders support the sale at the $54.20 per share proposed by Musk, adding in a press statement that it was determined to sealing the deal on the agreed-upon price and parameters. The firm has long claimed that fraudulent accounts account for 5% of Twitter’s users, but it has previously admitted in financial filings that the real figure could be higher.

Following Musk’s worries, Twitter declared early this morning that it is dedicated to the purchase at the pre-agreed-upon price, and that it has filed a proxy filing with the SEC. Twitter’s stock dropped 8% on Monday, closing at $37.39. 

That is far less than the $54.20 per stock that Mr. Musk decided to pay for the social media startup last month. It is also lower than where Twitter traded until Mr. Musk declared that he had purchased a large interest in the firm, the first step in what has become an increasingly complicated takeover story.

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