As reported earlier by Cassandra Fairbanks — Elon Musk announced that his bid to purchase Twitter is on hold pending more information about how many accounts on the platforms are bots.
Twitter shares plunged 24 percent in premarket after his announcement.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk tweeted.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
The eccentric billionaire included a link to a Reuters article that said Twitter “estimated in a filing on Monday that false or spam accounts represented fewer than 5% of its monetizable daily active users during the first quarter.”
If our twitter bid succeeds, we will defeat the spam bots or die trying!
— Elon Musk (@elonmusk) April 21, 2022
Twitter shares were down 12% at the market opening on Friday morning. The news rocked the tech world.
Twitter has made a deal with Musk to buy Twitter for $44 billion, but he has said that handling bots on the platform will be a top priority.
Back in April Steve Bannon warned Elon Musk to walk away from the Twitter deal.
Steve Bannon: Tesla has always been not really a company but an idea. I think it trades at something like 30 times sales. It’s something absurd evaluation. That’s why it dropped so much… Elon Musk today should notify the board of Twitter that he’s out. He’s pulling out. The stock will drop 20%. Because here’s why. All the cupcakes and all the snowflakes there, the management team. We can’t believe he’s going to come into the building. We’re going to sabotage things. The woman who kicked Trump off and kicked me off is sitting there crying in meetings. The head legal person who made all of these decisions about kicking people off, kicking conservatives off. She made the personal decision about the hard drive from hell of never mentioning it and shutting it down. Her. And she’s got big liabilities. And so you should preserve your documents, maam. He should pull the bid today, let the stock drop and tell the board, “Hey, since you don’t have another offer, I didn’t like what management said about me. I didn’t like the angle of attack. There’s no competing bid. And here’s what it’s telling you. Since it priced below where the stock traded eight months ago, they don’t even have an operating plan to get the stock back up. Screw Twitter. Here’s my number. After you have about 500 lawsuits for breaching your fiduciary duty call me back.
Boom! Steve was right — He even nailed the initial price drop on Musk’s threat to withdraw his bid.
This was from the April 27 War Room Show.