At the heart of the news in recent days, the takeover of Twitter by Elon Musk has been suspended by the latter. So is it a simple halt or the end of this soap opera that fascinates the financial world?
The percentage of fake accounts at the heart of the debates
Elon Musk is a charismatic figure and one of the most influential businessmen on the planet. He recently set out to buy one of the social media giants, namely Twitter. The amount of this colossal operation amounts to nearly 44 billion dollars
But this operation is temporarily suspended by the businessman himself. The reason ? Elon Musk wants to ensure that the number of fake accounts on the platform does not amount to more than 5%.
“The deal is temporarily on hold pending details regarding calculations that fake accounts and spam actually account for less than 5% of users,” the Tesla boss said.
When presenting its quarterly results, Twitter estimated that the share of fake accounts represented less than 5% of all accounts on the platform. This data is particularly important in terms of advertising in order to estimate the future revenues generated by the platform.
Twitter stock plummets
Following this news, which surprised many, Twitter’s share price fell by more than 15% on Wall Street. This fall is not the first for the course of the American company which has known more than complicated recent days on the markets. Last Friday, the title traded for around 38 dollars against 54.20 dollars at the time of the takeover proposal by Elon Musk.
A soap opera that risks destabilizing Wall Street, as analyst Dan Ives of Wedbush Securities puts it:
Wall Street will now assess 1) the deal is about to fall through 2) it’s an attempt by Musk to negotiate a lower purchase price or 3) Musk simply wants to get out of the deal. transaction with $1 billion severance fee
Some wonder about the real motivations of Elon Musk and see in this rebound, a signal that the entrepreneur wishes to back down and abandon this takeover project . Elon Musk had notably placed as collateral to finance this operation, shares of his company Tesla, which is also experiencing the last hectic weeks. After the controversies about Elon Musk’s wishes in terms of freedom of expression and moderation on the network, this is a new twist in this oh so mediatic takeover.
Nothing is yet recorded but these maneuvers could well mean the desire to abandon the project or the desire to save time on this redemption . The next few weeks will tell us if the richest man on the planet manages to finalize this takeover, which excites the entire planet.
What impact for Dogecoin?
While Dogecoin is undoubtedly the millionaire’s favorite cryptocurrency, many had hopes that Elon Musk would integrate DOGE into Twitter.
Even though the takeover seems compromised at present, the crypto does not seem to have given its last word. Indeed, a few weeks earlier, Elon Musk had declared that he wanted to use Dogecoin in order to stem fake profiles. The idea would thus be to remunerate in Dogecoin the users denouncing the false accounts.