But Twitter tells Musk that he’s buying it whether he wants to or not.
“‘Twitter is likely to ask the court for two things in its litigation against Musk,’ said Brian Quinn, a law professor at Boston College. ‘Twitter is expected to seek a ruling that it has not violated its contract with Musk, and it will likely seek a judicial order requiring Musk to complete the acquisition.'”
I believe that Musk is probably correct when he says that Twitter has far more bots and false accounts than they have always claimed. When I had a Twitter account, I knew that many of my followers were bogus. The counterfeits were kind of obvious, because my account would muddle along for weeks with a certain number of followers, more or less unchanged, then one day the number would double for no apparent reason. My account may have been unusual, and I’m not claiming that Twitter’s overall numbers are like that, but I suppose this had to have happened to many accounts, not just mine. I assume the holders of those accounts just accepted it, as I did, because the number of followers is a matter of pride. Who’s going to write to Twitter to complain about having too many followers?
Twitter is an unusual business phenomenon. It is not especially large or profitable, but it exercises a powerful impact on the public, in both discourse and action, in the USA and elsewhere. That impact is far disproportionate to its financial success. Twitter’s annual revenues are only about $5 billion – about the same size as Harley Davidson, DoorDash or Abercrombie and Fitch. But DoorDash doesn’t have the power to get Presidents elected, or foment revolutions. Moreover, Twitter’s revenues are minimal compared to those of the other big internet powerhouses and it has only a tiny fraction of Facebook’s user numbers. It seems that Twitter could be much more if the company could find (1) the route to better user numbers, and/or (2) the right business model. Elon Musk is obviously no dummy. He can see that. But he’s not happy with what he’s seeing, or not seeing, so far in Twitter’s data. Twitter claims that the number of spam accounts and bots is now “well under” 5% of its users. Musk seems skeptical, to say the least.
Or maybe he just got buyer’s remorse and is using the data as his pretext, or just as a negotiation ploy. That is also possible. As of this moment, he is stuck with a bid of $54 a share for a company trading at $37. (It was trading at about $52 in late April). He can’t be that thrilled with the situation.
Bloomberg did a thorough (and surprisingly funny) analysis of the issue.
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