Elon Musk has announced that his $44 billion deal to acquire Twitter is now on hold. This is coming after the Tesla Executive Officer estimated in a filing that false/spam accounts represented fewer than 5 percent of its monetizable daily active users in the first quarter of the year.
However, this issue has been a major concern surrounding the actual number of monetizable Twitter users over the actual value of the company after the $44 billion agreement between the company and Elon Musk.
Following Elon Musk’s tweet expressing his priority of removing the “spam bots” from the platform.
Furthermore, Twitter said in the filing that it faced several risks until the deal with Musk is closed, such as whether advertisers would continue to spend on Twitter and “potential uncertainty regarding our plans and strategy.”
- The company in Q3 2017 admitted it had overcounted its MAUs by 1 to 2 million, at a time when its MAU base was over 300 million.
- The error could put Twitter in even a more precarious situation regarding its advertisers.
- The company recorded $1.2 billion in revenues in the first quarter of 2022.
- The microblogging platform had in its Q1 2022 financial report admitted to overstating the figure of the platform’s users by 1.9 million in the last three years.
- Twitter said an “error” introduced in Q1 2019, resulted in the overstatement of its monetizable daily active usage or users (mDAU). According to the company, this went on undiscovered for three years.