Almost a month after he agreed to acquire Twitter, the fate of the deal remains unclear. In a statement, Musk stated that he would not be able to complete the deal until he learns more about the company’s operations and how it handles fake and spam accounts as well as betting bonus.
Despite statements from Musk, Twitter is still committed to closing the deal. The company noted in a statement that it will still follow the terms of the agreement.
It is widely believed that Musk’s statements are setting the stage for a possible change in the terms of the deal. Even if the deal is completed, the effects of his actions would not be immediately fixed. Because of this, the employees and shareholders of the company are still not exactly sure what will happen to the deal.
Without the deal, Twitter could potentially face an unpredictable billionaire investor who would significantly alter the company’s operations and leadership team. This could affect the social media platform’s advertising revenue and users.
Another potential issue that could affect the company is Musk’s possible exit from the deal. This could cause a legal battle between the two companies. It could also lead to endless background noise that would affect the company’s operations.
A Prolonged Fight
Some of the other issues that have raised doubts about the deal include Musk’s statements about the deal and the financing of the acquisition. The stock price of Tesla, which is one of the main reasons why the deal was agreed upon, has also declined.
The stock price of Twitter has also dropped significantly, which suggests that investors are not convinced about the deal’s completion. Since Musk first announced his intention to acquire the company, its stock price has lost all its gains.
In his latest statement, Musk claimed that the company might have undercounted the number of fake and spam accounts it has. Although he did not provide evidence to support his claim, it is widely believed that he is manipulating the situation to prevent the deal from closing. Some legal experts also believe that he is trying to create an adverse effect that could prevent him from closing the deal.
Despite the high bar that Musk had to meet in order to prove that he is manipulating the situation, Twitter has already acknowledged that there are less than 5% of its users are spam accounts. This figure could still prevent the deal from closing. In addition, it has been revealed that before making the acquisition offer, Musk waived his due diligence.