Elon Musk has come to the conclusion that it is difficult to verify the number of bot accounts on Twitter, despite the fact that the social media platform has given him its estimations, explained how it arrived at such numbers and given his team access to a “firehose” of user data that is typically sold to business clients.
The acquisition is now in “severe peril” as a result of the hazy bot statistics, according to individuals who spoke to The Washington Post. In case you were wondering if the Tesla and SpaceX tycoon was ever going to go through with his offer to purchase the microblogging platform.
The insider told WaPo that Musk’s team is “expected to take possibly extreme action,” albeit what exactly that “dramatic action” may be is uncertain, in light of the number of false accounts that cannot be correctly identified despite the extraordinary lengths Twitter has gone to offer proof.
People have long conjectured that Musk is using the bot statistics as a pretext to back out of the deal. The share price of the firm has fallen significantly since the billionaire declared his ambition to purchase Twitter in April, indicating that the rumored $44 billion price tag is already too expensive. Tesla’s valuation has also been negatively impacted by the controversy.
However, leaving would not be that simple. Unless anything significant occurs to Twitter’s business—and the bot problem is believed not to qualify—Musk has committed himself to the transaction. It is in the company’s best interest to see that the transactions are completed as Twitter continues to suffer losses as a result of the protracted discussions. Additionally, Musk will be liable for the $1 billion breakup cost if he runs away from the altar.
Twitter only received one remark on the procedure: “Twitter has cooperated and shared information with Mr. Musk in order to complete the deal in line with the merger agreement, and it will do so in the future. We think that all stockholders will benefit most from this deal. At the agreed price and parameters, we plan to complete the deal and enforce the merger agreement.”
Twitter said yesterday that 30% of its recruitment crew had been laid off, providing a more concrete illustration of the challenges the acquisition has brought about.
Under the threat of Musk’s takeover, Twitter has suspended hiring since May and reorganized the executive team in an effort to reduce expenses.
Less than 100 individuals will be impacted by these layoffs, which are only impacting the talent acquisition area, according to the Wall Street Journal. It seems reasonable that Twitter would want to ensure recruiting works effectively and ethically, as stated by a Twitter spokeswoman, given that hiring restrictions are not atypical during business acquisitions.
Source: The Register