Elon Musk, the CEO of Tesla offered $43.3 billion to purchase Twitter earlier this month. Many people are against this purchase as they say Elon will use the platform for his own personal gain to gain political influence over other parties around the world.
The deal that captured the attention of the whole world may not happen due to the high number of fake accounts existing on Twitter. Twitter’s current CEO claimed that less than 5% of Twitter accounts are fake but publicly refused to show proof of <5%.
Elon Musk mentioned in a tweet that about 20% of all accounts on Twitter are fake, which is four times higher than what Twitter claims.
Some analysts say that Elon is either using this as an excuse to get out of the deal or to get Twitter at a much cheaper price. This tweet from Elon also lowered the price of Twitter shares. At the time when Elon made the offer to buy Twitter on April 14, one share was worst at $54.20. Since then the price of Twitter shares had fallen to $37.39.
Twitter has over 329 million monthly active accounts and if Elon’s predictions are correct, this means that 66 million accounts are actually fake, something that would impact how much profit the platform is generating from advertising and the overall value of the platform.
If Twitter cannot justify through hard evidence that the number of fake accounts is less than 5% of the total number of accounts, the deal may be declined.