Musk’s Twitter Deal Put On Hold
Posted 18,May

By Chehan Jayasuriya

In Local News

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In a recent tweet, Elon Musk stated that his offer to buy Twitter for $44 billion was on hold as he is awaiting the calculation of spam/fake accounts on the platform. Musk further added that he is “committed to the acquisition.”

According to Twitter, the number of fake accounts is estimated to account for less than 5% of its daily active users during the first three months of this year. The claims were not different from what the company had shared in its previous disclosures. However, it cautioned that the figures were based on estimates and could be higher.

Over the years, Musk has been vocal about “defeating the spambots.” He identifies it as a critical objective following his planned takeover of the company.

Twitter has a history of being accused of not doing enough to address automated, fake accounts posting content.

The number of spambots on the service is a crucial statistic. A higher than expected figure could hurt the ability to grow advertising revenue or paid-for subscriptions, said Susannah Streeter, analyst at Hargreaves Lansdown. However, she is concerned about how genuine Musk’s concerns were.
“There will also be questions raised over whether fake accounts are the real reason behind this delaying tactic, given that promoting free speech rather than focusing on wealth creation appeared to be his primary motivation for the takeover,” she said.
“The $ 44 billion price tag is huge, and it may be a strategy to row back on the amount he is prepared to pay to acquire the platform,” she added further.