Published , by Asif Khan
Published , by Asif Khan
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.
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