In the area of the biggest transactions in progress, the one concerning the potential takeover of Twitter by Elon Musk is undoubtedly part of the top 3. Some argue that Twitter would keep a lot of compromising information secret, which would be at the origin of the doubts of Elon Musk. Others suggest that Elon Musk never had any real intention of buying Twitter and that the whole operation is just a marketing stunt. Who is right ? Who’s wrong ? Will we soon have the end of the story? We give you all the latest news about it.
- An unstable 41 billion euro deal
- Elon Musk accuses Twitter of withholding information
- Scandal of fake accounts, a simple excuse from Elon Musk
Elon Musk’s unstable deal at 41 billion euros
41 billion euros. Yes, you read that right. This is the current Twitter buyout deal amount. A cash offer. The Tesla and Space X billionaire wanted to speed up the negotiation process. In his own words, he’s not looking to play any game, and prefers to get straight to a response from Twitter. From a formality point of view, Musk has already filed the famous Form 13D with the SEC.
— Elon Musk (@elonmusk) May 28, 2022
To study the billionaire’s offer, Twitter sought advice from the famous firm Goldman Sachs. Law firm Wilson Sonsini Goodrich & Rosati is also believed to be part of the social network’s advisory teams, according to a Reuters report. Shortly before this tempting offer, Elon Musk declared that he did not intend to join the board of directors of Twitter. This decision would have prevented him from increasing his stake in the company beyond 14.9%.
Musk, however, remains Twitter’s largest shareholder. The current deal has, among other things, impacted the price of Twitter shares. Its price thus increased by almost 11.6%. However, the negotiations do not seem so simple as that. Many doubts in each party have been revealed, so the outcome may still be long overdue.
Elon Musk accuses Twitter of withholding information
Fake accounts in large quantities, bots, hidden security data… The reasons behind Elon Musk’s doubts are apparently numerous. But what is it really? Recently, Elon Musk took the veil off the rumors. He has come out publicly saying that he believes Twitter is information withholding.
Of course, the negotiations then took a much more complex turn. According to the creator of Space X, this would constitute a clear violation of Twitter’s obligations with regard to the terms of the buyout. From this premise, a turn was taken by Musk. He publicly recalled that he himself had initiated the speed and generosity of his offer in this deal, but that he was just as capable of ending it from one day to the next.
The confidential information voluntarily withheld by Twitter concerns fake accounts and bots. Parag Agrawal, the number one Twitter user, claimed that less than 5% of accounts on his platform were fake. He supports this data by explaining that Twitter uses a technique of random selection of accounts and then artificial intelligence reproducing human analysis.
Scandal of fake accounts, a simple excuse?
More and more people are wondering if this scandal of fake accounts might just be a simple excuse for Musk to run away from this takeover. Rumors have it that Elon Musk has been aware of these fake accounts and bots for a long time. Certainly, these accounts exist, and Twitter has not yet shared all of its data. But is that enough to ruin such an important deal?
The answer to this question is not easy, and entails different hypotheses and questions from the crypto community. The first hypothesis would be that Musk has finally lost interest in Twitter, and that he would no longer consider the takeover as profitable as that. However, breaking the takeover offer at this stage of the negotiations would cost him a significant sum. The accusations of withholding information from Twitter would thus constitute the ideal alibi to flee the takeover operation. Without consequences for him.
A second hypothesis is that the businessman is trying to lower the price. Instead of just saying goodbye to the takeover of the social network, many financial experts believe that Elon Musk’s strategy is to stir up trouble to get a better price. His strategy would be as follows: offer an attractive price, skim over the conditions, raise a problem at the last moment, and manage to have a much lower buyout price accepted so that Twitter has the feeling of not missing out. offer of the year.
He could be in good faith, Elon Musk still arouses mistrust. His status as an extraordinary businessman pushes the public to look for traces of machination in each of his actions. And could we do otherwise? How to believe that such an intelligent person could engage in such an important deal without knowing all the elements? Especially since his other feats of arms, market manipulation at Tesla or with Dogecoin, do not play in his favor.
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