News

Elon Musk Deal To Buy Twitter In Danger: Report

Twitter shares slid late Thursday after a Washington Post report that the $44 billion deal of Elon Musk to buy the social media giant is in danger.

The world’s richest man that is Elon Musk has previously expressed misgivings and even implied he could walk away from the deal over concerns about what he believes is an abundance of fake accounts.

According to the Post, however, Musk has been unable to pin down the percentage of Twitter accounts that are not genuine, despite being given access to internal data.

While Musk has already made comments putting his commitment to the deal in doubt, the latest report cited an anonymous source saying his team is preparing for a “change in direction.”

Twitter shares, which were already trading lower than the price offered by Musk, sank about four percent on the news in after-market trades.

“The Twitter soap opera is clearly coming to some sort of finale over the coming months as Musk makes the decision to stay (with a lower price) or go,” Wedbush analyst Dan Ives said in a note to investors.

“The Twitter deal has clearly caused chaos at Twitter.”

Ives expected Musk to reveal details of his fake account concerns in the coming weeks.

During the Qatar Economic Forum last month, Musk said that his Twitter purchase remained held up by “very significant” questions about the number of fake users on the social network.

“So we are still awaiting resolution on that matter and that is a very significant matter,” the Tesla car and SpaceX exploration chief said via a video link to the gathering.

Twitter executives have held firm that less than five percent of accounts are bogus, with Musk saying he believes the number to be much higher.

Musk said there were also questions about Twitter’s debt.

The chances of Musk buying Twitter as originally negotiated are slim, Ives said.

Wedbush set the chance of the deal happening at a lower price at 60 percent, leaving open the door to the possibility Musk will try to walk away with only paying a required $1 billion breakup fee.

Sources: AFP

Adib Mohd

Recent Posts

Meet Lee Jun Young Up Close in Kuala Lumpur, Tickets Now Available

Malaysian fans, the wait is finally over! Lee Jun Young, the multitalented actor, singer and… Read More

2 days ago

Lee Jung-jae and Lim Ji-yeon Reignite the Rom-Com Spark in Nice to Not Meet You, Exclusively on Prime Video

Prime Video has unveiled Nice to Not Meet You, an upcoming Korean rom-com series starring… Read More

2 days ago

Goodbye One-Off EPF, Hello Monthly Pension? Here’s What’s Brewing

If you’ve ever worried about spending all your EPF savings too fast after retirement, the… Read More

2 days ago

Generali Malaysia Strengthens East Malaysia Presence with New-Look Sandakan Branch

Generali Insurance Malaysia Berhad today announced the launch of its newly renovated branch in the… Read More

2 days ago

More Than a Makeover, L’Oréal Launches First-of-Its-Kind Social Salon in Asia

Malaysia is now home to Asia’s first-ever Beauty for a Better Life Salon, a dedicated… Read More

2 days ago

The Ordinary Opens Its First-Ever Pop-Up in Malaysia

The Ordinary has officially landed in Malaysia, not just in stores, but with its first-ever… Read More

2 days ago

This website uses cookies.