By: Michael Chuang
Founder and CEO of Tesla and other companies, Elon Musk, plans to end his $44 billion bid to buy social networking service, Twitter.
In May, Musk set his agreement to buy Twitter “temporarily on hold,” according to BBC. Twitter continued to delay reporting data regarding fake or spam accounts. Twitter had previously announced that the company’s spam and bot accounts compose less than 5 percent of its total users. However, Musk demanded evidence to support Twitter’s estimate.
Last Thursday, Twitter claimed to have removed 1 million spam accounts every day. Musk believes spam or bot accounts could potentially make up 20 percent or more Twitter users.
Since Musk suggested the deal between Twitter, he has lost over $65 billion. For several weeks, Musk repeatedly tried to gain information on daily active users. Due to the lack of information Twitter provided, Musk wished to end the deal. However, since he had formerly agreed, Musk needs to prove Twitter breached their agreement in order pull out of the deal.
Other factors such as stock market price drops among large tech companies may have caused Musk to terminate the deal. The reason Musk wanted to buy Twitter in the first place was because he believed in free speech. Previously, Twitter has banned several people from using their networking system such as former U.S. President, Donald J. Trump.
If Musk were to buy Twitter, he promised to loosen Twitter’s content moderation rules under his ownership.