Elon Musk tweeted early Friday morning that his US$44-billion plan to buy the social media giant was stalled pending an investigation into the prevalence of spam and fake accounts on the platform. About two hours later, he assured that the acquisition would still go through. Twitter shares closed down nearly 10 per cent Friday. (The Logic)
Talking point: The company claimed in a filing earlier this month that bots made up less than five per cent of accounts, though some believe the number is much higher, particularly among followers of high-profile users, including Musk. The Tesla CEO tweeted in April that fake accounts were “the single most annoying problem” on the platform. Critics speculate that Musk’s Friday announcement is a sign of buyer’s remorse. The deal would be financed in part by Musk’s own cash and a hefty loan against his shares in Tesla. This is the latest setback in what’s been a confusing and dramatic takeover bid involving public disagreements between Twitter and Musk, including over the prospective new owner’s role at the firm, should the deal go through.