Twitter’s share price fell on Thursday, July 7, following the publication of an article by the washington post that the takeover of the social network by Elon Musk would be seriously threatened, because of the concerns of the multi-billionaire about spam.
“Drastic” measures
On Wall Street, the title of the Californian company lost more than 4% during electronic trading after the close of trading, after a session up slightly (+ 1.52%).
The team of the boss of Tesla and SpaceX would have interrupted negotiations with one of the investors supposed to contribute to the acquisition of Twitter for 44 billion dollars (more than 43 billion euros). “Now that Musk’s team has come to the conclusion that Twitter’s figures on fake accounts were not verifiable, they should take drastic measures,” said one of the sources familiar with the matter, details the daily. American.
Elon Musk has repeatedly questioned the data transmitted by Twitter on spam, fake accounts and the means put in place to limit their proliferation. In early June, the group’s board of directors agreed to allow Elon Musk access to the mountains of data needed to answer his questions on this subject, after the businessman threatened, in a document official, to withdraw his offer.
“The market is skeptical about the chances that the transaction will take place at the expected price”
So the world’s richest man and his team set out to analyze this raw data to determine if the percentage of fake accounts actually represents less than 5% of Twitter’s daily active users, as claimed by the network.
“At this stage, with an offer at $54.20 a share and a stock around $39, the market is clearly skeptical about the chances that the transaction will take place at the expected price,” noted Dan Ives of Wedbush in a statement. note. “We believe the odds of the deal happening are currently around 60%, with a renegotiated price in the range of $42 to $45 per share,” he added.
If ever Elon Musk terminates his commitment to buy Twitter, he exposes himself to substantial legal proceedings. Both parties have agreed to pay a severance fee of up to $1 billion in certain circumstances.