Musk says he is freezing the operation due to doubts about fake accounts

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Elon Musk has announced that he has temporarily frozen the purchase of Twitter until the company offers him reliable details that support that the fake and spam accounts of the platform suppose less than 5% of active usersaccording to posted on your profile of the aforementioned social network.

The announcement comes two weeks after Twitter reported in a statement that fake or spam accounts accounted for less than 5% of monetizable daily active users during the first quarter of 2022, as reported by Reuters.

Musk has just announced the freezing of the purchase process, so we will have to wait for more details. Nonetheless, in a later tweet He has assured that he remains committed to the acquisition. Twitter, for the moment, has not commented about.

On April 25, the leaders of Twitter made it official that they had reached an agreement with Elon Musk to sell the social network to the South African tycoon. Since then, Musk has made several announcements about some changes he intended to make when he was in effective control of the platform. One of them, according to what he said, would be to vigorously pursue false accounts. Others, check the moderation policies.

All these intentions, in addition to the fact that the agreement was official on both sides, made one think that everything was closed and that there would be no surprises. Something that with Elon Musk involved can never be taken completely for granted.

Penalty for withdrawing from the purchase

If Musk finally backs down, he would have to face a potential $1 billion penalty for canceling the agreement. Said penalty is reflected in the purchase agreement and is applicable to both parties, as reported by Seeking Alpha.

The agreement states that “if the conditions of the obligations” of the sale are met, and one of the parties decides to cancel the transaction, whoever has decided to back out will be required to pay the aforementioned amount.

However, in that “if the conditions of the obligations are met” may be the crux of the matter, since if the agreement includes some type of clause referring to the number of false accounts that Twitter has so that the sale is closed, Musk could retire without paying a single dollar.

There is also speculation that it could be a move by the tycoon to try to lower the price of the sale, estimated at 44,000 million dollars.

Image | Felixsj

Elon Musk has announced that he has temporarily frozen the purchase of Twitter until the company offers him reliable details…

Elon Musk has announced that he has temporarily frozen the purchase of Twitter until the company offers him reliable details…

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