Tesla and SpaceX CEO Elon Musk’s plans to buy Twitter could be in jeopardy, at least according to a Washington Post report. Following the report, Twitter shares fell on Thursday as speculation resurfaced that Musk’s $44 billion deal could be scrapped.
Since the deal to buy Twitter, Musk has voiced his concerns about bots on the platform and even went so far as to say he could pull out of the deal if the number of fake Twitter accounts rises above 5 percent.
Musk was unable to determine the percentage of fake Twitter accounts despite being granted access to internal data, according to a Washington Post report. The report also cited an anonymous source as saying that Musk’s team is preparing for “direction change“.
After this report, Twitter shares, which were already trading below the price offered by Musk, fell another 4% in over-the-counter trading.
Wedbush analyst Dan Ives reportedly told investors in a note that “soap opera with Twitter is expected to come to a close over the next few months as Musk decides whether he wants to stay and pay a lower price than the $44 billion set or leave. Ives also expects Musk to reveal details about his problems with fake accounts again soon.
Musk last spoke publicly about these concerns at the Qatar Economic Forum last month, where he said the Twitter purchase was still being delayed by some “very important” issues regarding bots on the platform.
While Twitter executives insist that less than 5% of accounts are fake, Musk refuses to believe it. He also reportedly has questions about Twitter’s debt.
Ives noted that the likelihood of Musk buying Twitter as “initially negotiated” was slim, and his firm predicted the deal would be “60 percent” likely to come at a lower price, with the possibility that Musk would try to leave after payment for termination of the contract in the amount of $ 1 billion.