The Clap
Elon Musk is growing more frustrated with Twitter’s (NYSE: TWTR) lack of transparency over the number of spambots on the social platform, & now the deal is at risk.
What happened?
- Twitter recently reported that spambots make up less than 5% of its daily active users (DAU)
- Musk estimates that spambots make up no less than 20% of Twitter’s DAU, & ”could be *much* higher”
- Twitter’s CEO refused to “publicly show proof” that Twitter’s spambots are actually less than 5%
Why this matters
Elon’s $54.20/share offer was based on the “less than 5% figure”. He says renegotiating a deal at a lower price is not “out of the question”.
More recently, as seen in Musk’s latest tweet, he explicitly says that “this deal cannot move forward” until Twitter’s CEO publicly shows proof that spambots make up less than 5% of DAU.
