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Elon Musk’s Twitter deal at risk

A dark cloud hangs over Musk’s Twitter deal due to concerns over fake account figures.

According to reports, Elon Musk’s deal with Twitter Inc. may be at risk because of a lack of clarity regarding the platform’s fake spam accounts.

In late April, Musk agreed to buy the social media platform for $54.20 per share. He has since indicated several times that he wants to back out over spam account figures.

Twitter executives told Reuters today that they are removing more than 1 million spam accounts per day, and these fake accounts make up less than 5% of the total. That is double the number of daily bot takedowns CEO Parag Agrawal cited in a May tweet.

Despite closing up 1.5% on Thursday, Twitter shares fell more than 4% in after-market trade, changing hands at around $37. Investors are and have been, clearly indicating they don’t expect the acquisition to close – or at least not at the original price.

Wedbush analyst Daniel Ives has said the odds of a deal happening are at about 60% with a renegotiated price in the $42-$45 range due to the fake account issue. 

Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.