Elon Musk questions his takeover of the social community

Tesla chief Elon Musk said on Friday that he was suspending the download of Twitter until details about the share of fake accounts on the social network were found out. However, he claims that he is “still committed” to buying the social network. The group’s stock, which is listed on the New York Stock Exchange, fell about 15% after this announcement in electronic trading before the opening of Wall Street. Earlier in the day it fell 25%.

“The Twitter acquisition is temporarily on hold, waiting for details that spam and fake accounts represent significantly less than 5% of users,” Elon Musk wrote on the platform, which has nearly 93 million subscribers. In contact with AFP, Twitter did not react immediately. He then reiterated his commitment to taking over the social network, but the market questioned his real intentions.

A contract worth $ 44 billion

At the end of April, the board of directors of the social network accepted a takeover offer of 44 billion dollars, formulated by a capricious leader of South African descent. Elon Musk has promised to rid Twitter of spam, authenticate users and increase transparency, without specifying how he intends to implement the project.

At the beginning of May, during the presentation of its quarterly results, the company stated that on average from January to March, it has 229 million daily users who are said to be monetized, ie exposed to advertising. On that occasion, she estimated that less than 5% of them were spam or fake orders.

“Key indicator”

The share of fake accounts is a “key indicator” for Twitter, explains Susannah Streeter, market analyst at Hargreaves Lansdown, because “calculating the exact number of people actually tweeting is considered crucial for future revenue streams through advertising or paid subscriptions on the site.”

In addition to fighting anti-spam, Elon Musk said he wanted to make Twitter a bastion of freedom of expression and said he was ready to bring back former US President Donald Trump, whose account was permanently suspended after the January 2021 attack on the Capitol.

“Friday the 13th Horror Movie”

Since the takeover bid by the head of Tesla and SpaceX, the value of Twitter on the stock market has fallen by billions of dollars. The title traded just over $ 38 on Friday, well below the $ 54.20 purchase price per share offered by the billionaire.

Dan Ives of Wedbush Securities said Elon Musk’s latest tweet would “turn the circus of taking over Twitter into a horror film from Friday the 13th.” it will soon collapse 2) it is Musk’s attempt to negotiate a lower purchase price or 3) Musk just wants to give up the agreement with the $ 1 billion severance pay “, the analyst states in detail in the note.

Withdrawal to protect Tesla?

However, the leader tried to convince himself of his ability to finance the operation, planning to resort to a significant personal contribution and request a bank loan, as well as a margin loan in which he would pledge his Tesla shares as collateral.

Earlier this month, Elon Musk claimed to have raised just over $ 7 billion from various investors, Oracle co-founder Larry Ellison and Saudi Prince and businessman Al-Walid bin Talal. But for Dana Ives, the entrepreneur overestimated the strength of his Tesla shares, whose price has fallen sharply since the announcement of Twitter’s takeover, and could seek to protect electric vehicle makers.

Leave a Comment