Elon Musk's Deal To Buy Twitter Comes To A Standstill

Elon Musk, the world's richest man, had said that one of his priorities would be to remove "spam bots" from Twitter and now he has disclosed that his $44bn (£35bn) deal to buy Twitter is on hold after he queried the number of fake or spam accounts on the social media platform.

In a tweet, he said he was waiting for information "supporting the calculation that spam/fake accounts do indeed represent less than 5% of users".

The initial stock market response was to send Twitter stock plunging 25%, as analysts speculated that Musk is trying to negotiate a lower price for the deal or pull out completely. The Tesla and Space-X founder is waiting to have the details supporting Twitter’s assertion that fake accounts accounted for fewer than 5% of its daily active users during the first three months of this year.

Musk has been widely reported for his criticisms of the way Twitter has been run and about the need to clean up fake accounts. Mr Musk has called for "defeating the spam bots" on Twitter as well as several other changes, including bringing back some banned accounts such as that of former US President Donald Trump. 

There is now some real doubt that the transaction will proceed, although Musk said in a subsequent tweet that he was “still committed to acquisition. 

Twitter says that in working out the percentage of spam accounts, "it applied significant judgment, so our estimation of false or spam accounts may not accurately represent the actual number of such accounts... The actual number of false or spam accounts could be higher than we have estimated. We are continually seeking to improve our ability to estimate the total number of spam accounts." 

Twitter had issues with automated, fake accounts being used to post misleading content for a long time and the company does admit there are false or spam accounts on the platform. It has carried out an internal review of a sample of accounts and estimated the average number of false or spam accounts during the first quarter of 2022. “The false or spam accounts for a period represents the average of false or spam accounts in the samples during each monthly analysis period during the quarter,” said Twitter in its First Quarter 2022 Results. 

Some commentators suggest that if Mr Musk does still decide to go ahead with the deal, a renegotiation of the price and other terms seems likely.

Other analysts questioned why Musk would suddenly express concern about Twitter's estimate that 5 percent of accounts are fake, an estimate that the company has included in regulatory filings for years. Under the terms of the deal, if either Twitter or Mr Musk walk away they must pay the other side a termination fee of $1bn

Elon Musk/Twitter:    Twitter:    Reuters:    NDTV:     BBC:    Guardian:    Daily Mail:      Independent:   

You Might Also Read: 

Twitter, Free Speech & Disinformation:

 

« Why Data Storage Is the Number One Cyber Recovery Strategy
A Short History Of Cyber Crime - Part 1- Its Motivations »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

The PC Support Group

The PC Support Group

A partnership with The PC Support Group delivers improved productivity, reduced costs and protects your business through exceptional IT, telecoms and cybersecurity services.

North Infosec Testing (North IT)

North Infosec Testing (North IT)

North IT (North Infosec Testing) are an award-winning provider of web, software, and application penetration testing.

Jooble

Jooble

Jooble is a job search aggregator operating in 71 countries worldwide. We simplify the job search process by displaying active job ads from major job boards and career sites across the internet.

Seagate Technology

Seagate Technology

Seagate data storage systems are purpose-built for enterprise and data centre performance, scalability, reliability and security.

CyberInt

CyberInt

CyberInt’s Managed Detection and Response services span globally and include some of the top finance, retail and telecommunication organizations.

Cyber Affairs

Cyber Affairs

Cyber Affairs is the first Italian press agency entirely dedicated to cyber security.

LMG Security

LMG Security

LMG Security is a cybersecurity consulting, research and training firm.

Maven Technologies

Maven Technologies

Maven Technologies specialize in secure data destruction, electronics recycling, asset management, and highly detailed reporting.

Touchstone Security

Touchstone Security

Touchstone Security is a company with a passion for technology, a hyper-focus on cybersecurity, and a special affinity for cloud technology.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

BullGuard

BullGuard

BullGuard is an award-winning cybersecurity company focused on providing the consumer and small business markets with the confidence to use the internet in absolute safety.

Secure-CAV Consortium

Secure-CAV Consortium

Secure-CAV is a technology-led consortium funded by Innovate UK to drive the development of cybersecurity solutions for connected and autonomous vehicles.

PricewaterhouseCoopers (PwC)

PricewaterhouseCoopers (PwC)

PricewaterhouseCoopers is a multinational professional services network of firms headquartered in London, United Kingdom and operating in 157 countries.

Vietnamese Security Network (VSEC)

Vietnamese Security Network (VSEC)

Vietnamese Security Network (VSEC) is an information security company providing website vulnerability scanning and monitoring services.

Spotit

Spotit

Spotit offers a wide-ranging portfolio of technologies and services, from consultancy, assessments and pentesting to the set up of completely new security and network infrastructures.

Core to Cloud

Core to Cloud

Core to Cloud provide consultancy and technical support for the planning and implementation of sustainable security strategies.

VP Techno Labs

VP Techno Labs

VP Techno Labs is an award-winning cybersecurity firm focusing only cybersecurity to develop cutting edge solutions for emerging business.

Bastion Networks

Bastion Networks

Bastion are a security-focussed managed solution provider and consultancy. We work with advanced cyber security vendors to produce managed security solutions to protect from online threats.

Neya Systems

Neya Systems

Neya Systems, a leader in advanced off-road autonomy and high-level multi-robot mission planning, provides innovative solutions for uncrewed ground, aerial, and surface vehicles.