Elon Musk declares purchase on Twitter in “temporary suspension”

Elon Musk could now do liberals a favor, far more than the perceived freedom to spread conspiracy theories and flirt with racism, which MAGAs have long wanted. Elon Musk has suspended the purchase of Twitter, pending confirmation of the status of “real accounts” with respect to bots. Given the fact that Trump’s Eastern European “friends” love to manipulate social media to an astounding degree. and given that we are in the middle of the election season, it is essential to have true accounting. But there are likely other things going on that will be established after the facts from CNBC:

Elon Musk announced on Friday that his Twitter deal is on hold until he receives more information on how many fake accounts there are on the social media platform.

Twitter shares plummeted 18% after the announcement. A Twitter spokesperson did not immediately respond to a CNBC request for comment.

Tesla CEO Musk announced last month that he plans to buy Twitter for $ 44 billion and previously tweeted that one of his top priorities would be to remove “spam bots” from the platform.

Twitter’s position is that spam / bots make up only about 5% of the total number of accounts. Of course, the true account number is critical to evaluation, and for those of us whose careers plan to spend a good deal of time researching on Twitter, the 5% number seems low. But the lower it is, the better and people want the truth.

The audit has a high stakes. If Twitter goes bankrupt and Musk later finds 14% fake accounts (for example), he would have every right to sue former executives or even pull out of the deal if he notices it soon enough. But the bot rate question, while important, could serve an even higher purpose for Musk. He gives him more time to consider the matter thoroughly. His interest suddenly appeared and the decision to buy even more. Everything was moving blindingly, so fast it seemed surprisingly irresponsible.

Musk suffered a significant PR blow in the aftermath of the initial announcement. He has drawn inexplicable and harmful polarizing positions, appearing to taunt and play with people who have legitimate concerns. More importantly, Tesla shares plummeted. Tesla shareholders had to be worried that Musk would spend too much time with his flashier new toy. Tesla shares rose 7% on the announcement of the suspension alone, reflecting the severity of Tesla shareholder concerns. Additionally, Tesla shares comprise by far the highest percentage of Musk’s wealth as estimated by CNBC yesterday at $ 220 billion. Experienced readers will notice that it’s down from the nearly $ 300 billion range we read a few months ago. Once again, Tesla has taken the hit.

Wall Street remained highly skeptical that the purchase would actually go through with a mid-week trading price of $ 46 per share versus Musk’s $ 54 per share offering, leaving an 8- to-8 gap. 15% between the exchange value and the purchase price of Musk. Professional traders often don’t leave a chance for that type of profit on the table. Some insiders knew a few things, of course.

Regardless, spam / bot accounting serves Americans a significant purpose and could actually harm the MAGA movement, especially if Musk places an even higher priority on keeping them away, even more so if Trump is ultimately disappointed.