BY The Western JournalMay 14, 2022
2 years ago
BY 
 | May 14, 2022
2 years ago

Musk's Twitter Deal Falling Apart? Don't Worry, It's All Part of His Plan

The talk about Elon Musk's Twitter deal just keeps buzzing as new developments hit the news cycle again and again.

On Friday morning, things took another turn when the billionaire tweeted that his deal to buy the social media giant was "on hold."

That had some asking whether the deal will fall through -- but it could be a tactical move on Musk's part.

His tweet said the deal was "temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users."

Musk linked a report from Reuters saying Twitter estimated in a quarterly filing that bogus accounts made up less than 5 percent of its "monetizable daily active users."

The company said in the filing on May 2 that its estimate "may not accurately represent the actual number of such accounts."

Musk made it clear when he made the $44 billion deal to buy the platform that he planned to rid it of fake accounts.

This pause in the deal had some concerned that he might not finalize the purchase.

Twitter noted in the filing that it faced several risks until the deal with Musk is closed, including whether advertisers would continue to spend on the platform and the "potential uncertainty regarding our future plans and strategy," Reuters reported.

The company's stock took a tumble after Musk's tweet about the pause, falling more than 20 percent in the premarket session, according to The Wall Street Journal.

But after tweeting about the pause in the deal, he followed up a couple of hours later with a tweet that said, "Still committed to acquisition."

What is Musk doing? Is he trying to back out of the deal?

Aron Solomon, the head of strategy and chief legal analyst for Esquire Digital, told The Western Journal in an email on Friday that he thinks Musk is trying to keep this deal constantly in the news.

"Musk’s endgame here involves keeping Twitter not just in the daily news cycle but seemingly the hourly," Solomon said.

The pause on the deal could have been an excuse to get leverage to get out of the deal, but Musk put that idea to bed when he said he is dedicated to the acquisition.

"But I also don’t think the deal is 'temporarily on hold' because, well, deals like this don’t work that way. I’m not sure how the buyer of a $43 billion asset tells the seller 'Imma pause for a bit,'" Solomon said.

Also, Musk has known about the company's estimate of spam and fake accounts for a while now since the quarterly filing was made on May 2.

Tweeting about it a week and a half later seems to be a strategy to just keep the whole deal fresh in the news cycle.

It's also important to remember that this pause on the deal is coming after several shakeups at Twitter.

On Thursday, Twitter CEO Parag Agrawal announced changes at the company that included the firings of consumer product leader Kayvon Beykpour as well as the head of revenue product, Bruce Falck.

He also announced a pause on most of the company's hiring as well as other cost-cutting moves.

These internal shifts at Twitter play a role in the ongoing deal and show that Musk is already influencing the platform. That would indicate that his purchase will keep moving forward.

"Musk already has internal eyes and ears in Twitter to recognize who’s friend and who’s foe," Solomon said. "He’s going to clear out as many executives and managers as possible before he arrives. And he’s going to do it with a blunt instrument. Fire first and ask questions later."

"He tells the existing management team that they either need to execute on his strategic calls now or he’s just going to come in and clear out everyone responsible for Twitter’s current strategy and trajectory -- even more firings," Solomon added.

[firefly_poll]

Musk has already made it clear that he has big plans for Twitter in order to put it on a more profitable trajectory. The billionaire will move to cut costs and make operating changes to improve the company's bottom line, according to the Wall Street Journal, and he has told investors that an initial public offering could come in just a few years.

So this temporary hold on the deal should not have anyone panicking.

It seems to just be part of Musk's process in keeping up the publicity on him and the deal.

"So we don’t have all the answers today (we never do)," Solomon said, "but it’s going to be a particularly interesting week ahead in the Twitterverse."

This article appeared originally on The Western Journal.

Written by: The Western Journal

NATIONAL NEWS

SEE ALL

Tennessee Lawmaker Seeks Impeachment Of Vice President Harris

According to The Hill, Rep. Andy Ogles (R-Tenn.) has officially filed impeachment articles against Vice President Kamala Harris. These charges accuse Harris of incompetently managing…
6 hours ago
 • By Benjamin Clark

Shooting At Trump Rally Leaves One Dead, Two Injured

In a shocking incident, a gunman opened fire at a rally in Butler, Pennsylvania, leaving former President Donald Trump wounded and two others severely injured.…
6 hours ago
 • By Benjamin Clark

Clint Eastwood's Longtime Partner Christina Sandera Dies At 61

Christina Sandera, the longtime partner of Hollywood icon Clint Eastwood, passed away at the age of 61 due to natural causes related to heart disease…
7 hours ago
 • By Benjamin Clark

Ella Emhoff: Rising Figure in Fashion and Activism Amidst Political Turmoil

Ella Emhoff, Kamala Harris's stepdaughter, has stirred considerable public interest with her candid endorsements and personal expressions intertwined with major US political dynamics. According to…
7 hours ago
 • By Benjamin Clark

New York Confronts Missouri’s Supreme Court Plea In Trump’s Hush Money Case

CNN reported that New York Attorney General Letitia James strongly opposed Missouri's petition to the Supreme Court concerning President Donald Trump's hush money case. Missouri…
7 hours ago
 • By Benjamin Clark

DON'T WAIT.

We publish the objective news, period. If you want the facts, then sign up below and join our movement for objective news:

    LATEST NEWS

    Newsletter

    Get news from American Digest in your inbox.

      By submitting this form, you are consenting to receive marketing emails from: American Digest, 3000 S. Hulen Street, Ste 124 #1064, Fort Worth, TX, 76109, US, http://americandigest.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact.
      Christian News Alerts is a conservative Christian publication. Share our articles to help spread the word.
      © 2024 - CHRISTIAN NEWS ALERTS - ALL RIGHTS RESERVED
      magnifier