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Elon Musk puts Twitter (TWTR) deal on hold pending supporting info on bot stats

Elon Musk is altering the deal. Pray he doesn't alter it any further, Twitter shareholders.

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Elon Musk just tweeted out that he is putting the deal to acquire Twitter on hold pending further explanation of the company's claim that less than 5% of users are bots.

A Twitter (TWTR) filing on Monday made the bold claim that less than 5% of its monetizable daily active users during the first quarter were bots. Apparently Musk isn't buying it, and he should know as someone whose replies are filled with crypto shills and verified accounts that claim to be him. Then again, Twitter does define the term active user differently than its competitors, so the company could be telling the truth based on its own specific way of calculating these stats.

Twitter (TWTR) shares crashed nearly 25% on the news that Elon Musk has paused the deal.
Twitter (TWTR) shares crashed nearly 25% on the news that Elon Musk has paused the deal.

Alongside his rhetoric about making Twitter a public square for free speech, Musk has made claims that he would rid the platform of spam bots. Based on his reaction to Twitter's recent disclosure, it seems that he believes the company is understating the problem.

Just yesterday, rumors spread across the Internet that Musk would no longer be using margin debt on his Tesla shares to pay for this Twitter deal. Now he may be stuck paying the $1 billion breakup fee if he walks away from the agreed-upon $44 billion acquisition. Could this get any messier? Keep it locked on Shacknews to find out.


This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Full Disclosure:

At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:

Long Twitter via TWTR shares

Luminary

Asif Khan is the Luminary and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

From The Chatty
    • reply
      May 13, 2022 3:11 AM

      Is he looking for a face-saving way to back out of this whole thing

      • reply
        May 13, 2022 4:24 AM

        No he was totally for real going to spend $43 billion dollars on it.

        • reply
          May 13, 2022 4:29 AM

          On reflection rather than backing out I think he knows that Twitter's share price is now entirely a function of what he says and does, so he's going to fuck around then try and re-cut the deal at a much lower price.

          • reply
            May 13, 2022 4:40 AM

            Actually yeah, that sounds on-brand for him.

          • reply
            May 13, 2022 7:45 AM

            That, plus Tesla's stock is also down. And Tesla also holds a ton of bitcoin, which has cratered. All the financials of the deal are out of whack now.

        • reply
          May 13, 2022 4:45 AM

          I don't know anything about how this works, but Asif says he's still on the hook for a billion dollars? Seems kind of reckless just for the lols.

          • reply
            May 13, 2022 7:57 AM

            only if he breaks the deal outside of the agreed conditions. the % of bots is much larger than twitter claimed, it gives musk an out under the "material adverse effect clause" of the deal, because he made his offer under the assumption that the % of bots twitter claimed was correct.

          • reply
            May 13, 2022 8:51 AM

            a totally inconsequential amount of money to Elon

      • reply
        May 13, 2022 7:11 AM

        That or he was annoyed he didn't have a headline for a few days.

    • reply
      May 13, 2022 3:16 AM

      What a loon.

    • reply
      May 13, 2022 3:47 AM

      5% would be wildly optimistic. Haha

    • reply
      May 13, 2022 4:30 AM

      What a charade.

    • reply
      May 13, 2022 6:03 AM

      Why is this kind of naked manipulation allowed lol. Like this seems so incredibly obvious what is happening.

      • reply
        May 13, 2022 6:11 AM

        There is no rules for the rich

      • reply
        May 13, 2022 7:12 AM

        I don't know much about the stock market and I think Elon Musk is a total prick and probably a cancer for humanity, but I do not quite understand how this is manipulation? Didn't he say he'd buy the company for x$ per share? Does this change if the value of the company drops? Isn't it bad for him when the stocks fall? Either way I think he should not be allowed to discuss an ongoing deal in public about a public company.

        • reply
          May 13, 2022 7:36 AM

          He maybe is using his power to destroy/hurt Twitter and sink it’s stock. He can back out (at a loss of 1b) but he may choose to come back after it’s ruined and dirt cheap . He seems like he is fucking with it now

      • reply
        May 13, 2022 8:48 AM

        the FCC and other agencies will investigate this. but gov agencies are slow, and no agency that polices anything has figured out how to respond to the speed of social media.

        can anyone respond fast enough to prevent long term damage to twitter? nope

    • reply
      May 13, 2022 6:27 AM

      I liked him more when he sent rockets into space.

      • reply
        May 13, 2022 6:51 AM

        And when he was the quiet introvert quirky nerd. Not the elitist right winged memer hes become.

    • reply
      May 13, 2022 7:16 AM

      "Was going to buy TWTR - NO DEAL. Was told certain # of accounts - FAKE NEWS, there are many RIGGED & FRAUDULENT robotic members!"

    • reply
      May 13, 2022 7:33 AM

      Sounds like post-twit clarity

    • reply
      May 13, 2022 7:58 AM

      i swear, he's just fucking with SEC at this point.

    • reply
      May 13, 2022 8:06 AM

      Some of my favorite Twitter follows are bots. The funny harmless ones that search for and retweet combinations of words, procedurally generate images or phrases, and just general Good Bots™.

      But for every one of those, I do have to imagine that there are probably thousands of xxx1234 bots from propaganda farms and marketing firms. I don't really have anything to say or offer a solution, just that if all bots were gone my feed would be markedly worse.

      ¯\_(ツ)_/¯

    • reply
      May 13, 2022 8:30 AM

      Which of you Elonstans don't think this is an obvious market manipulation?

    • reply
      May 13, 2022 8:50 AM

      turns out jack picked yet another bad strategy for running Twitter

    • reply
      May 13, 2022 11:43 AM

      This fucking guy is just trolling around.

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