https://www.foxnews.com/opinion/twitter-musk-lying-battle-social-media-company-future
Elon Musk wants out of his deal to buy Twitter. The world’s richest man claims that Twitter’s management is in “material breach” of various provisions in the purchase agreement and that the company has made “false and misleading representations” about its business. Management denies Musk’s complaints.
Musk wants to know how many active daily users on Twitter are actually “bots” – or fake accounts. He says management refuses to turn over information that could accurately determine the number. Since 90% of the firm’s revenues come from advertising, the information is critical to advertisers, and to valuing the company.
Management says only 5% of its ADU (average daily users) are spam, and claims it kicks one million bots off the site each day; as recently as May, CEO Parag Agrawal claimed the number of fake accounts ejected was half a million. The lack of consistency is not reassuring.
Who is telling the truth? My bet is on Musk.
After all, who has more to lose? If Twitter’s management is found to have fudged its numbers, heads will roll and the stock will collapse. If Musk’s charges turns out to be a phony excuse to bow out of an overpriced deal, the billionaire’s reputation will take a hit, for sure. But the brilliant Tesla and SpaceX founder is already considered erratic; few will be surprised by his about-face. Yes, there is that pesky billion-dollar fee that either side may owe for torching the transaction; Musk can afford it.