Tesla and SpaceX owner Elon Musk made a $44 billion bid last month on the social network Twitter. However, the recovery is not yet complete. These are the scenarios.
Musk says Twitter’s potential is not being fully exploited. On Twitter, he wants to make freedom of expression much more important. He previously complained that the company dictated too much what should and should not be said. Musk hopes to make money by attracting more users and paying subscribers.
While Twitter has accepted the offer, there are still hurdles to overcome for the takeover to actually happen. The deal has been put on hold and it is even possible that Musk will forgo the purchase altogether.
Scenario 1: Purchase in progress
Under the deal, Musk will pay $54.20 per share, or 54% more than the share price on the day before investing. It was the end of January. Musk currently owns the most shares, even more than Twitter founder Jack Dorsey.
It’s common for the buyer (in this case, Musk) to thoroughly review the company’s business and accounting after a deal. If something strange appears that has no logical explanation, an inheritance can occur.
Often, authorities such as the Federal Trade Commission or the European Commission also want to investigate such large takeovers. They then investigate, for example, whether a purchase harms competition in the market. When we finally get the green light on all fronts, we will probably be at least six months away.
Scenario 2: Musk has a discount
Recovery is now to waitMusk recently wrote. It has to do with the number of fake accounts and spam that Twitter forwards. According to the company, less than 5% of accounts are fake or spam, but Musk wants the company to show how it achieved that percentage.
At a meeting in Miami, Musk appeared to hint at further discussion about Twitter’s price following the news. “This is out of the question,” he said. It is unclear what will find a fair price for the company in this case.
Musk believes that at least 20% of users are fake. “But it is impossible to know how many robots there are. It is immeasurable as the human mind.”
The current CEO of Twitter is Parag Agrawal.
The current CEO of Twitter is Parag Agrawal.
Photographer: tension
Scenario 3: The purchase doesn’t happen
“My intention is to continue buying”, wrote Musk has been on Twitter lately. But counting the number of fake profiles and spam weighs on the deal like the sword of Damocles.
Musk demands that current Twitter chief Parag Agrawal provide public evidence that Twitter is made up of 5% or fewer bots. “The takeover cannot take place until it happens.”
tried agrawal tweet thread Explain how Twitter detects fake profiles and how to estimate the number of possible fake accounts. Musk responded by asking if Agrawal tried to call users to verify their presence and then send a poo emoji.
The fact that Musk is currently very selective about this information may also be a way to avoid the lawsuit altogether. He must have a valid reason for doing so, for example if he discovered the fraud or made a purchase based on false information.
If it turns out that Twitter has misjudged the number of fake profiles, that can be a good reason to cancel the purchase. Musk can’t just pull out of the deal, he’ll have to pay $1 billion.
Source: NU
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
