In a reply to @Teslarati, Elon Musk maintains that his takeover deal of Twitter (TWTR.us) cannot proceed until the company provides proof that the number of fake or spam accounts make up less than 5% of total accounts.
The social media platform has filed its preliminary proxy statement with the SEC for the deal at the agreed price of $54.20. Considering that Twitter's price per share at the time of writing is $37.39, the original deal terms represent a 45% premium on the current market valuation.
An important consideration is the tweet from Parag Agrawal, saying that the calculation of the spam percentage is very difficult.
In our view, the chances of the deal taking place at $54.20 are extremely low. Musk is either looking for a better price or the deal may be scuppered.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.