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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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Tesla CEO Elon Musk Given 22 Days Ultimatum by A U.S Court to Acquire Twitter

Following Elon Musk’s decision to opt-out of the $44 billion Twitter acquisition deal, a Delaware Court of Chancery in the United States has ordered the Tesla CEO to acquire the micro-blogging platform within 22 days.

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Following Elon Musk’s decision to opt-out of the $44 billion Twitter acquisition deal, a Delaware Court of Chancery in the United States has ordered the Tesla CEO to acquire the micro-blogging platform within 22 days.

The judge presiding over the case made the order following Musk’s decision to proceed with the acquisition of the social networking company 12 days before the court trial on the lawsuit Twitter filed against him. 

Musk had earlier opted out of the Twitter deal where he accused the platform of thwarting his information rights by not providing enough data on fake accounts on the platform.

Musk claimed in a tweet that Twitter is “20% fake/spam accounts” and suggested Twitter’s filings with the Securities and Exchange Commission were misleading.  The company had earlier disclosed that only less than 5% of its daily active users are spam accounts.

However, the Tesla CEO wasn’t convinced by the number of bots accounts twitter claimed were on the platform. He, therefore, insisted that his acquisition of the social media company cannot move forward until he sees more information about the prevalence of spam accounts.

It should be recalled that on May 27, 2022 Investors King reported that

Twitter also displeased by Musk’s action filed a lawsuit in the Delaware Court of Chancery, urging him to complete his $44 billion takeover of the social media company where it accused him of “outlandish” and “bad faith” actions that have caused the platform irreparable harm and “wreaked havoc” on its stock price.

Recently, during a court hearing after the judge at the Delaware court had given Musk a 22 days ultimatum, he asked that Twitter drop the initial lawsuit scheduled for October 17, but the social media company insisted that it would keep the litigation alive until the deal was concluded.

Musk had made the request stating that the lawsuit should be stepped down to enable him to raise the needed capital for the acquisition ahead of the October 28 deadline.

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World Richest Man, Elon Musk Offers $44 Billion to Close Twitter Deal

Tesla CEO and the world’s richest man, Elon Musk has offered to buy Twitter at the original price of $44 billion. 

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Tesla CEO and the world’s richest man, Elon Musk has offered to buy Twitter at the original price of $44 billion. 

Microblog platform Twitter has confirmed that Elon Musk has offered to close his $44 billion deal to buy Twitter Inc. on the terms he originally agreed to.

This is coming two months after the world’s richest man had initially pulled out of the deal. He alleged some inconsistency in the number presented to him.

He alleged that the company lied about the number of bots and spam accounts on its platform.

Investors King learnt that Elon Musk’s deal to buy Twitter Inc. has been on a wild ride during the past six months. 

On the 4th of April, Elon Musk disclosed a 9 percent stake in Twitter. Ten days after, he made a bid to buy Twitter at a share price of $54.20. He threaten to sell his stake in Twitter if the company rebuffed his offer. 

On the 21st of April, Elon Musk disclosed that he had lined up a $46.5 billion package to finance his bid for Twitter. 

In May, Musk tweeted that the deal was “temporarily on hold” because of concerns he had about fake accounts on the platform, prompting Twitter’s shares to fall 10 percent.

He further stated that he would not move on with the deal until Twitter was clearer about how many of its accounts were fake. 

On the 8th of July, he officially aim to terminate the deal, alleging that Twitter did not provide significant information about the fake accounts. 

In reaction to the termination, Twitter sued Elon Musk and tried to force him to honour the term of the agreement. 

However, his recent decision to go ahead with the deal will be a big win for the social media platform. 

Already Twitter’s share price has spiked by more than 20 percent after the news. A check by our correspondent shows that Twitter’s share price is trading above $50 as of the time of this report. 

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Nigerian Government Sue Facebook And Instagram; Seeks N30 Billion as Penalty

the Advertising Regulatory Council of Nigeria says it has lodged a suit against Meta. 

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An agency of the Nigerian government, the Advertising Regulatory Council of Nigeria says it has lodged a suit against Meta. 

Investors King learnt that the Advertising Regulatory Council of Nigeria (ARCON)  is seeking a penalty of N30 billion against Meta in a suit filed at the Federal High Court in Abuja. 

Meta is the parent company of Facebook, Instagram and WhatsApp. American billionaire Mark Zuckerberg has a majority stack in the company. 

ARCON claimed that both Facebook and Instagram displaced unapproved advertisements to Nigerian audiences. 

The advertisement regulatory agency further stated that the actions have caused a loss of revenue for the Nigerian Government. 

ARCON stated that “the continued publication and exposure of various advertisements directed at the Nigerian market through Facebook and Instagram platforms by Meta Platforms Incorporated without ensuring the same is vetted and approved before exposure is illegal, unlawful and a violation of the extant advertising Law in Nigeria”. 

It also stated that the council will not permit unethical and irresponsible advertising in Nigeria’s advertising space. 

Meta’s agent, AT3 Resources Limited was also joint in the suit. However, the court has not fit a date for the suit.

If the court rules in favour of ARCON, it will change the face of social media advertising in Nigeria. 

ACORN further clarified that the council is not regulating the online media space. Rather, its focus is on advertising and marketing communications on the online platforms in line with its establishment Act.

The Advertising Regulatory Council of Nigeria (ARCON) has the government mandate to oversee, approve or disapprove any advertisement in the Nigerian public space. It also has the statutory mandate to generate revenue for the government through public advertisements. 

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