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Musk leaves biggest Twitter question unanswered: Will he buy the company?

 1 year ago
source link: https://finance.yahoo.com/news/musk-meet-twitter-employees-deal-185425705.html
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Musk leaves biggest Twitter question unanswered: Will he buy the company?

Fri, June 17, 2022, 3:54 AM·3 min read
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Tesla (TSLA) and SpaceX CEO Elon Musk avoided a question on Thursday that for weeks has weighed on the minds of Twitter's (TWTR) employees and investors: Does he still intend to buy the social media company?

In a virtual all hands meeting with Twitter’s staff on Thursday, Musk reportedly laid out part of his vision for the company, according to Bloomberg, which cited a person familiar with the matter.

The meeting marks Musk's first official communication with Twitter employees since he entered an agreement in late April to buy the company. Since then, however, Musk has expressed concerns over the $44 billion acquisition, raising doubts about whether he intends to go through with it.

Musk has cited the number of reported bots on the platform as his biggest problem with the move, though Twitter insists that automated accounts make up less than 5% of total the network's monetizable daily active users (mDAU). Some observers have questioned whether the famously mercurial CEO is deploying the purported bots problem as a convenient excuse for wiggling out of the mega-deal as Twitter's value plummets amid a tech selloff and broader bear market.

Musk's touch-and-go plans to buy Twitter have made headlines for weeks. During Thursday's meeting, the CEO characterized media reports, without specifying which ones, as containing lies about how the deal had been proceeding.

Twitter post to Tesla CEO Elon Musk's handle May 13, 2022
Twitter post to Tesla CEO Elon Musk's handle May 13, 2022

In tweets and correspondence with Twitter’s management, Musk has asserted his right to walk away from the deal, though legal experts question whether doing so would trigger Musk’s responsibility to pay Twitter a $1 billion break-up fee.

According to Musk, Twitter has refused to share with him raw data on the social media platform’s number of spam and fake accounts, which he says is necessary to evaluate whether to move forward with the deal.

“Twitter’s latest offer to simply provide additional details regarding the company’s own testing methodologies, whether through written materials or verbal explanations, is tantamount to refusing Mr. Musk’s data requests,” a lawyer for Musk wrote in a letter to Twitter on June 6.


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