Elon Musk and Twitter: The best frenemies

Imagine you are asking somebody for a date and are trying to confirm whether they are already seeing somebody or not. Neither is the date accepting it nor are they denying it. Frustrating, right?

 

That’s the state of Elon Musk and Twitter right now.

 

Even the people that haven’t even heard of an Elon Musk before would also have heard about this $44 billion deal. 

 

And although the deal almost went through, new concerns kept coming up, which not only delayed the process but worse, made both the parties approach the court.

 

So what’s happening?

 

When Twitter announced that Elon will be taking over the company, a deal was proposed for over $44 billion. While both the parties seemed to be alright with it, a few concerns came up. 

 

The thing is that the valuation of Twitter is based on the number of active users it has. Twitter claims that it has more than 330 million active users, but recently, it was revealed that Twitter may have more than 5% of spam accounts, which heavily influences this deal.

 

Because of this, Elon’s team thinks that a valuation of $44 billion is not worth a platform that isn’t even revealing the number of spam accounts it has.

 

On the other hand, Twitter claims that Elon has put the platform in a unique position where he basically made his way to buying the platform and is now backing out. Because of this, Twitter right now has sued Elon Musk.

 

Twitter sued Musk earlier this week after he officially tried to bail on his $44 billion agreement to buy the company.

 

Nearly immediately after he said he intended to pull the plug, Twitter board chairman Bret Taylor said the company would be taking Musk to court, and the company filed its lawsuit on Tuesday. 

 

So far, things seem pretty unclear as to whether this acquisition would go through or not. But what seems clear is that some analysts think this is the right time to buy Twitter stocks as well.

 

… and what better way to start investing in any global stock than to sign up on TradeCross and start investing now?

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