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Twitter Shares Fall After Elon Musk Says No to Joining Board

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Following Elon Musk’s decision to reject the offer of joining the Twitter board, Twitter shares fell in premarket trading Monday shedding over 8 percent to less than $43 a share at 4 a.m. ET from $46.23 it closed on Friday before recovering slightly. At press time the Twitter share at premarket is trading at $45.15.

On Monday, April 4, Tesla and SpaceX CEO, Elon Musk disclosed via financial filings that he’s Twitter’s biggest shareholder, holding a 9.2% stake in the firm. The following day, April 5, Musk and Twitter said he would be joining Twitter’s board.

Musk would have been appointed to Twitter’s board on Saturday, but the world’s richest man informed the company on the day that he would not, in fact, be taking the board seat. At press time Twitter has officially issued an 8-k to notify the public of the departure of a director.

“Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(d) Election of Directors

Pursuant to the April 4, 2022 letter agreement, Elon Musk was invited to serve on the board of directors (the “Board”) of Twitter, Inc. (the “Company”). On April 9, 2022, Mr. Musk informed the Company that he is not joining the Board.”

Agrawal said that Musk remains the largest shareholder of Twitter, and the company will remain open to his input.

“We were excited to collaborate and clear about the risks,” he wrote. “We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders was the best path forward.”

The Twitter CEO did not say whether Musk gave specific reasons for changing his mind about taking on the new obligation or whether it was entirely Musk’s decision.

If Musk had joined the board, he would not be able to acquire more than 14.9% of the company’s shares. Now that he’s no longer joining the board, he can theoretically increase his stake, should he wish to. Some industry experts speculated on Twitter that he may now try to take over the company and rebuild it in the way that he wants to.

The Twitter CEO did not say whether Musk gave specific reasons for changing his mind about taking on the new obligation or whether it was entirely Musk’s decision.

If Musk had joined the board, he would not be able to acquire more than 14.9% of the company’s shares. Now that he’s no longer joining the board, he can theoretically increase his stake, should he wish to. Some industry experts speculated on Twitter that he may now try to take over the company and rebuild it in the way that he wants to.

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“We Suspend Over Half A Million Spam Accounts Every day” – Twitter CEO Reveals

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Twitter CEO, Parag Agrawal has revealed that Twitter suspends over half a million spam accounts on the site every day.

In a series of tweets, the tech guru discussed extensively on the issue of Spam,  how the impacts have affected human work, and how the company works extensively to solve them.

This comes barely three days after Investors King reported the reasons Parag sacked top Twitter officers.

“First, let me state the obvious: spam harms the experience for real people on Twitter, and therefore can harm our business. As such, we are strongly incentivized to detect and remove as much spam as we possibly can, every single day. Anyone who suggests otherwise is just wrong.

“Next, spam isn’t just ‘binary’ (human / not human). The most advanced spam campaigns use combinations of coordinated humans + automation. They also compromise real accounts, and then use them to advance their campaign. So – they are sophisticated and hard to catch.

“Some final context: fighting spam is incredibly *dynamic*. The adversaries, their goals, and tactics evolve constantly – often in response to our work! You can’t build a set of rules to detect spam today, and hope they will still work tomorrow. They will not

“We suspend over half a million spam accounts every day, usually before any of you even see them on Twitter. We also lock millions of accounts each week that we suspect may be spam – if they can’t pass human verification challenges (captchas, phone verification, etc),” he tweeted.

Further emphasizing on the challenge the team encounters, Parag said: “many accounts that seem like spam are real accounts and they cause the most damage to other users. In retrospect to that, the team updates the systems and rules constantly to remove as much spam as possible, without inadvertently suspending real people or adding unnecessary friction for real people when they use Twitter”.

He added that the use of private data is particularly important to avoid misclassifying users who are actually real.

“FirstnameBunchOfNumbers with no profile pic and odd tweets might seem like a bot or spam to you, but behind the scenes we often see multiple indicators that it’s a real person”, he said.

 

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Twitter CEO Supports Elon Musk’s Decision To Suspend Takeover

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Chief Executive Officer, Twitter, Parag Agrawal has supported the decision of Elon Musk to place the takeover of Twitter on hold. Parag Agrawal, in his tweet, supported the result of the Twitter report on spam accounts at less than five percent of users.

Investors King recalls that Elon Musk had said he would place the Twitter takeover on hold following the report by the company on fake/spam accounts.

Analysts have speculated that Musk may be looking for ways to renegotiate the price of the deal or walk away. Their findings erupted further on Monday after Bloomberg reported that Musk had said at a tech conference that a deal at a lower price was “not out of the question.” He also said spam accounts might be four times Twitter’s claims, according to the report.

However, Mr Agrawal defended the firm’s count, saying he would discuss the issue with data and facts. He explained that the company used a combination of public and private data to determine which accounts were real, reviewing random samples every few months. He added that Twitter suspended roughly 500,000 suspect accounts daily and locked millions more.

“Let’s talk about spam. And let’s do so with the benefit of data, facts, and context. Unfortunately, we don’t believe that this specific estimation can be performed externally, given the critical need to use both public and private information (which we can’t share). Externally, it’s not even possible to know which accounts are counted as mDAUs on any given day.

“There are LOTS of details that are very important underneath this high-level description. We shared an overview of the estimation process with Elon a week ago and look forward to continuing the conversation with him, and all of you.

“The margins of error are well within its estimate of spam accounts representing less than five percent of daily users,” Mr Agrawal said.

However, the stock market, which has seen weeks of turmoil wipe billions off the value of many companies, remains skeptical that the deal will go through as outlined.

The price of a Twitter share has fallen below $38, sliding more on Monday after Mr Agrawal’s tweets. This is less than the price of the stock before Mr Musk revealed his interest in the company and well below the $54.20 per share he has offered.

Twitter’s board approved the takeover last month, but the deal was not expected to be completed for months.

An analyst at Wedbush Securities, Dan Ives said that a major fall in Tesla shares- which were critical to Mr Musk’s financing of the deal – and wider market declines have caused Musk to get “cold feet”.

Dan said while he expects the deal to close, there is a need to be prepared for all scenarios and always do what’s right for Twitter.

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Twitter CEO Reveals Reasons Behind Sack of Top Officers

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Chief Executive Officer of Twitter, Parag Agrawal has disclosed that the company sacked two of its officials in order to reduce costs and as well, fight against the economic challenges being faced by the company.

Parag insisted that he is committed to doing the right thing and as well, taking some drastic decisions in the wake of Twitter’s sale to Elon Musk.

Investors King had earlier reported that Elon disclosed that his decision to buy Twitter has been put on hold due to the current data on spam/fake accounts on Twitter. Parag is however confident that the deal will still go through.

According to Parag, the two sacked officers are Kayvon Beykpour, who was in charge of the consumer division, and Bruce Falck, who was in charge of revenue.

Further revealing the reasons behind the sack, Parag wrote on Twitter: “A lot has happened over the past several weeks. I’ve been focused on the company and haven’t said much publicly during this time, but I will now. We announced changes to our leadership team and operations yesterday. Changes impacting people are always hard. And some have been asking why a ‘lame-duck’ CEO would make these changes if we’re getting acquired anyway. The short answer is very simple:

“While I expect the deal to close, we need to be prepared for all scenarios and always do what’s right for Twitter. I’m accountable for leading and operating Twitter, and our job is to build a stronger Twitter every day. No one at Twitter is working just to keep the lights on. We take pride in our work. Regardless of the company’s future ownership, we’re here improving Twitter as a product and business for customers, partners, shareholders, and all of you.

“People have also asked: why manage costs now vs after close? Our industry is in a very challenging macro environment – right now. I won’t use the deal as an excuse to avoid making important decisions for the health of the company, nor will any leader at Twitter”.

Parag concluded that he would continue to attract deep complexities of Twitter’s service and business, adding that the company can expect more change for the better.

He also promised to constantly bring more transparency to the work he does at the company.

“You won’t see tweets from me on the ‘topic of the day’ or the loudest sound bite, but rather on the ongoing, continuous, and challenging work our teams are doing to improve the public conversation on Twitter,” he added.

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