It's easy to imagine Elon Musk getting tired of buying Twitter. In any case, he had enough reasons.
For example, Musk may find that the acquisition may turn out to be more expensive than expected. Because his credit for the $ 44 billion offer is closely linked to his assets. This in turn is related to the value of his shares in the carmaker Tesla, which he manages. And since Musk's announcement at the end of April that he wants to take over Twitter, they have fallen by almost 25 percent up to yesterday Thursday (they are currently rising again). Musk may have to deposit more collateral for such a deal than planned.
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Or the entrepreneur might find that Twitter doesn't have a particularly good business model. Still, the company makes money, but unlike other platforms like Facebook, it doesn't have billions of users or hundreds of billions of dollars in revenue. Even a subscription model, as Musk announced, would probably not turn Twitter into a cash cow. If he did the math and let Twitter's board of directors guide him through the latest numbers, he might come to the conclusion that none of this is worth $44 billion to him.
Or the hobby twitter could notice that moderation on platforms is more difficult than some people think. Musk had announced that he wanted to bring free speech back to the platform. You should be able to say more or less anything on Twitter. Many had questioned how this should work, also against the background of new European regulations such as the Digital Services Act, which makes the platforms even more responsible. If Musk took a closer look at it, he might realize that he can't keep his promises.
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| Elon Musk Pauses Twitter Shopping For This Reason |
could be anything Because the reason Musk now gives for putting the takeover on hold for the time being can safely be considered advanced. The deal is temporarily on hold until Twitter's calculations can be checked, according to which spam or fake accounts make up less than five percent of users, he tweeted . The entrepreneur linked to an eleven-day-old report from the Reuters news agency.
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Musk had announced that as the owner of Twitter he would fight such accounts (although he has profited from them himself). However, it remains unclear why the exact number of fake accounts is so central to the takeover. One thing is certain: the figures reported by Reuters are not new at all. Twitter lists the number of spam and fake accounts quarterly, and not just since yesterday . There has long been talk of around five percent. In other words, Musk could have known that – and checked it – a long time ago.
He does not know what he wants
Now, you never know how serious Musk is about a tweet. He has already announced that he wants to take Tesla private and that he has secured the financing, although that was apparently not true. And his plans to take over Twitter were not taken seriously by many (including the author). In any case, two hours after the original tweet, Musk backtracked and wrote that he was still interested in a takeover. Maybe he just wants to lower the price, maybe just get out of the deal cheaply.
Either way: Should Musk actually drop the takeover or lower the price on the grounds that Twitter's information on the number of fake accounts is grossly wrong, that's an amazing nonsense argument, even by Musk's standards. After all, he himself had refrained from due diligence, the careful examination of the company's figures during the negotiations.
It seems as if someone didn't really think about what they actually want.
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