Elon Musk is evidently looking for a restructured deal that would see his $44 billion balance to acquire Twitter, and he has an idea that would bring a substantial discount to the Tesla CEO based on bot account concentration on the platform.
Musk stated earlier this month that his acquisition of Twitter was “on hold,” following the social media platform’s claim that bots accounted for less than 5 percent of its active users. Musk, along with many users of Twitter, disagreed with this statistic, stating that the actual figure was more likely around 20 percent.
Elon Musk (Credit: TED/YouTube)
Twitter said the deal has to go through at the agreed-upon price, which is $44 billion or $54.20 per share. Twitter currently trades at less than $38 per share, which means Musk would be drastically overpaying at the current time. The deal is expected to be completed by October 24, exactly six months after Twitter announced it would accept Musk’s offer.
Musk seems unwilling, however, and is looking for a discount on the deal. One Twitter user suggested the percentage of bot accounts in the platform’s overall user base should be equal to the discount the social media network gives Musk. For example, if 25 percent of the users on Twitter are fake, Twitter should provide Musk with a 25 percent discount, which would bring the deal price down to $33 billion, or $40.65 per share. This would be more on par with current trading levels.
Absolutely
— Elon Musk (@elonmusk) May 21, 2022
It is entirely possible that one of the two sides could also backtrack from the deal. Twitter or Musk would be required to pay a $1 billion termination fee if either party chooses to walk away. If Musk walks away, Twitter could go after Musk in court for additional damages.
Keyword: Elon Musk wants a Twitter deal discount based on bot account concentration