By
Temitope Olatunji
April 16th, 2024
Elon Musk tagged the official Twitter handle of the US SEC to call their attention to the investigation suggestion.
In a developing update on the Elon Musk and Twitter deal, the billionaire has called on the US Securities and Exchange Commission (SEC) to investigate whether Twitter’s users’ report is correct. Many stories have developed from the unfinished business between Musk and Twitter. The billionaire’s agreement to buy the social network company for $44 billion has triggered a lot of reactions. The buyer himself, Musk, said the deal is on hold as he investigates spam and fake accounts. The Tesla CEO said he suspects that Twitter is not coming out straight on its estimation of fake uses. The microblogging service provider says spam accounts or bots represent only 5% of all users. Meanwhile, Musk suspects that the fake users are about X5 more than Twitter accounted for.
Musk Calls on SEC Investigation on Twitter
In a recent tweet, Elon Musk created a Twitter poll asking:
“Twitter claims that >95% of daily active users are real, unique humans. Does anyone have that experience?”
With more than a million votes, a Twitter user suggests that the SEC investigate the social network company. The person proposes that the Commission should find out if Twitter is honest with its numbers. According to the user, Twitter should face severe consequences and “complete distrust of investors” if findings reveal that the company was not truthful in the official filing.
In response to the tweet, Elon Musk tagged the official Twitter handle of the US SEC to call their attention to the investigation suggestion.
Many did not expect that there would be so many arising issues on the buyout offer. The unpleasant update has started making investors dumb the company’s shares which initially surged after Musk announced his 9% stake in Twitter. The businessman’s hint of a possible renegotiation of his initial buyout offer has tanked Twitter even lower. He said his offer coming at a different price is “not out of the question.”
Twitter’s Investors Worry about Failed Deal with Musk
Following Musk’s statement, TWTR lost 8%. Investors are greatly concerned about the happenings with Musk, Twitter, and now the SEC. Many even believe that the Tesla CEO and SpaceX CEO may back off from his purchase offer. However, Musk would be paying a $1 billion breakup fee if he decides he is no longer buying Twitter.
Former US President Donald Trump believes that Musk can not buy Twitter at the “ridiculous” price. In his opinion, the breakup fee is stopping the entrepreneur from backing off the deal.
Meanwhile, Twitter still expects its deal with Musk to go through at the agreed price of $54.20 per share. At the time of writing, Twitter stock is down 0.42% to $38.16 t after-hours trading. The company’s stock has been steadily declining over the year except for a 3.62% gain in the last three months.