The actions of twitter closed up 2.49%, at US$ 38.32, after starting the trading session this Tuesday (17th) with a drop of almost 2%. The move earlier in the day was due to the billionaire Elon Musk declare that the company’s offer to buy is suspended due to a disagreement over the number of fake accounts, controlled by “bots”, on the social network.
The Tesla owner also stated that the negotiation “could not continue” unless Twitter proves that less than 5% of accounts on the Tesla social network are false.
In an interview with CNN Brasil Business , Phil Soares, an analyst at Órama, explained that there is no concrete reason why the price of the paper had risen throughout the day. “[o que se sabe] is that Musk maintains the purchase intention, so the market is in a waiting rhythm”.
On twitter
“My offer is based on documentation submitted to the SEC [equivalente à CVM nos Estados Unidos] be correct”, said the businessman.
Musk referenced Twitter’s calculation that less than 5% of total accounts on the social network would be fake. However, an analysis carried out by the billionaire’s team would have pointed out that the number is at least four times higher, 20%.
“You can’t pay the same price for something that is much worse than what they claimed,” Musk said at the 2022 All-In Summit conference in Miami on Monday.
Asked whether the Twitter deal would be viable at a different price, he told the conference that “it’s not out of the question. The more questions I ask, the more my worries grow.” The original purchase proposal totals $44 billion.
The CEO of the social network, Parag Agrawal stated that internal estimates of fake accounts on the platform over the past four quarters were “well below 5%,” responding to Musk’s criticism.
According to Agrawal, Twitter’s estimate, which has remained the same since 2013, cannot be reproduced externally due to the need to use public and private information to determine whether an account is fake.
Musk responded to the executive’s speeches about the methodology. “So how do advertisers know what they’re getting for their money? This is critical to Twitter’s financial health,” he wrote.
Independent researchers have estimated that 9% to 15% of Twitter profiles are bots.
With information from Reuters
Source: CNN Brasil
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