Twitter CEO Supports Elon Musk’s Decision To Suspend Takeover

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.