What you need to know
- Elon Musk's Twitter acquisition is reportedly in "serious jeopardy".
- A new report claims Musk's camp has found big problems with the figures Twitter gave about spam accounts on its platform.
- Musk's team could now take "drastic action" in light of the revelation.
A new report says that Elon Musk's Twitter acquisition could be in "serious jeopardy" following the revelation that Twitter's figures on spam accounts cannot be verified.
The Washington Post reports:
The news is the latest twist in an ongoing saga surrounding just how many of the accounts on Twitter are actually real, and what proportion are spam or fake. Musk has been given a "fire hose" of data from Twitter to try and establish what's really going on, but the data may have actually torpedoed the deal instead. The report says talks with investors have "cooled in recent weeks" and that "now that Musk's team has concluded it cannot verify Twitter's figures on spam accounts... it is expected to take potentially drastic action."
The same source said "it was likely a change in direction from Musk's team would come soon" but not what that could entail.
Wedbush's Dan Ives said that there now seem to be three paths ahead, but said that the likelihood of the deal closing on the original terms of a $54.20 share price worth $44 billion total was now less than 5%. He says it is more likely that there will be a renegotiated price of between $42-$45 per share, or possibly a court battle as Musk tries to get out of the deal.
The deal currently includes a $1 billion fee for either party should they choose to walk away save for a large legal problem, the Post cites experts who say there is doubt that the singular issue of bots and spam would qualify as extenuating circumstances. It seems that the Twitter acquisition (at least in its current form) is in serious jeopardy.
Master your iPhone in minutes
iMore offers spot-on advice and guidance from our team of experts, with decades of Apple device experience to lean on. Learn more with iMore!
Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9