spam bots are the center of battle between Elon Musk and TwitterTitle New York Times in reference to the proliferation of fake accounts on the social network, for which the businessman complained only after finalizing his offer of 44,000 million dollars. What is on the periphery of the frustrated agreement? Is the circulation of inauthentic profiles the real reason why the tycoon got off of the negotiations?
As one market specialist said, Musk is capable of launching rockets into space but cannot remedy the presence of little robots that tweet?
Spam is the excuse, ergo Musk is not disenchanted
Isn’t it naïve to believe that a businessman like Musk, with his bulging wallet, industry experience, and the advice that sustains him, has bid with the candid illusion of being the owner of Twitter and who then left disenchanted, shedding tears in his office?
In other words, Did Musk only know about the fake accounts on twitter after his millionaire offer? Didn’t an entrepreneur like Musk and the battalion of people who accompany him in making decisions foresee this reality in the social network?
Musk’s lawyers pointed out that Twitter has not been transparent in showing its statisticsdeepening those entrepreneur’s doubts regarding the official data: that spam accounts are below 5% of total active users.
Naturally, the 51-year-old mogul was aware of Twitter spam and accounts that cannot be monetized. In that case (if we trust that inauthentic activity on the social network is the reason Musk called off the deal) there are two more plausible options than simple disenchantment.
- One, that Musk offered 44,000 million and that only after his proposal did he demand transparent information to get a reduction in the amount you would pay in this negotiation. This hypothesis coincides with the point of view of many analysts and even an investor close to Musk, who slipped that idea in an interview prior to the withdrawal of the offer.
- Another possibility is that Musk has found himself with a worse scenario than he imagined. Initially, once Twitter began to deliver official information. That is, he knew about spam (in fact, he had complained about it when he was just a user of the social network) but he ran into a much more serious state when he poked his nose into the company that now has Parag Agrawal as CEO.
The tantrum for the changes Twitter made without Musk’s consent
The defense of the owner of Tesla and SpaceX commented in a statement before the United States Securities and Exchange Commission (SEC) that in addition to the inconsistency of the statistics, Twitter made changes without Musk’s consentillicit moves within the framework of the negotiation.
That is another aspect to consider.
A millionaire move at an inappropriate time?
Another variable that is considered when analyzing the hidden reasons for the cancellation of the deal between Musk and Twitter is related to the world Economic crisis largely caused by the war between Russia and Ukraine affecting multiple companies, including Twitter.
When Musk made his offer in late April., shares of the social network were above 54 dollars and are now below 36. This means that while the negotiations advanced, the shares of the company fell more than 30%.
However, this wraps us up again in a hypothesis bordering on innocence: Musk did not know about the recession, since the war in Ukraine was already hitting the world economies before the materialization of his offer?
An elaborate strategy by Musk to get rid of Tesla shares?
Taking a closer look at the South African-born businessman’s move, one possibility emerges, which some market insiders have slipped. Musk would have bid for Twitter knowing that he would never own it.
With what intention? As Josh Wolfe, co-founder of the Lux Capital company, said in a tweet, when Musk offered 44,000 million for Twitter divested of shares in Tesla, his own car companyselling them at advantageous conditions.
Those titles were about to expire and Musk liquidated them for a value of 8,500 million, indicating at the time that he needed the money to buy Twitter.
Wolfe closes with a question that forces us to think: “Let’s be honest, Musk can launch rockets into space and can’t fix the bot problem?”.
Economics specialist Henry Boldget, CEO of Business Insidercommented on the matter: “Elon Musk’s ten-year Tesla options were about to expire, so he had to sell them. The Twitter offer allowed him to do so without having to face questions about why he was selling them.”.
Musk is an unpredictable guy
As we pointed out in TN Techno when reviewing the reasons why Musk had bought Twitter (few imagined at the time that the operation would be cancelled), the owner of SpaceX and Tesla is a man who does not avoid eccentricity and who is also, to a large extent, unpredictable.
Based on this (and recovering a certain innocent look here) we could say that Musk’s acceleration on Twitter and the abrupt braking respond to those characteristics of his personality. Like a child who wants to buy a nice toy, the billionaire would have advanced with initial enthusiasm and soon became disenchanted.
The fine that Elon Musk should pay
If the justice determines that Musk is responsible for the frustration of the agreement, the businessman must pay a $1 billion fine.
If we return to the hypothesis about his elaborate plan to divest Tesla shares, even paying that figure Musk would come out ahead.
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Spam on Twitter is Elon Musk’s excuse: why he won’t buy from the social network