Will Elon Musk withdraw from the Twitter takeover? This is the question that many people have been asking since the suspension of the procedure. According to sources close to the case, the takeover of Twitter by Elon Musk would even be “seriously threatened”.
The takeover of Twitter by Elon Musk for approximately $44 billion is not yet set in stone. More and more doubts are emerging as to Elon Musk’s desire to take possession of the blue bird social network. It suspended the takeover in May pending more details on the number of fake accounts on the platform. Twitter finally decided to provide him with the data on the fake accounts in order to continue the process.
According to a new report from the Washington Post, Elon Musk’s team has already stopped discussions with investors. She would also be unable to verify Twitter’s data on the number of fake accounts and spam accounts. This obviously does not bode well for the finalization of the sale. In fact, Twitter announced this week that it delete 1 million spam accounts daily. The company also revealed that 5% of 229 million active users were fake or spam accounts during the first quarter of the year.
Elon Musk’s takeover of Twitter has a 60% chance of happening, analyst says
Sources familiar with the matter told The Washington Post that the Twitter takeover is ” seriously threatened “. Twitter, however, plans to close the deal. A special meeting with shareholders should be held by the end of the month. The shareholders of the social network will meet to vote and approve (or not) the takeover by Elon Musk.
In the meantime, more and more people fear that the American billionaire will withdraw from the agreement. However, it would not be so simple. Legal proceedings will be initiated if he cancels the purchase. Termination of the agreement could even cost him $1 billion. Nevertheless, it is important to remember that Elon Musk has never himself confirmed his desire to withdraw his offer. He was even rather optimistic last month when he declared that he wanted 1 billion users on Twitter.
Finally, the experts still have a mixed opinion. Wedbush Securities analyst Daniel Ives believes there is 60% chance of the deal happening. He thinks the price would be renegotiated down to $42 or $45 per share. Nevertheless, there is also 35% chance Elon Musk will cancel the purchase and pay the breakage fee, according to him. ” The Twitter soap opera will clearly come to some sort of finale over the next few months when Musk makes the decision to stay (with a lower price) or leave. “, specified Daniel Ives.