Tesla founder and Twitter owner Elon Musk has announced that his acquisition is pending while an investigation into how many bots among users of the platform is ongoing.
In its last earnings report, Twitter’s latest estimates put it down to less than 5% of its total user base, which Musk is now contesting.
What Musk’s new investigation is trying to uncover is unknown, but in light of the recent cryptocurrency price collapse and the need to protect Tesla stock, It has been speculated that he will either use all the results to justify withdrawing from the trade, or use the resulting uncertainty to lower the price of the trade.
He expects to lose about $1 billion by abandoning the purchase, but that’s a small amount compared to the $44 billion he proposed.
It occurred less than a day after more turbulence within Twitter. Long-term consumer product leads on the platform Kayvon Beykpour has announced that he has been fired by CEO Parag Agawaral.
Stop parental leave and share the last @Twitter-Related News Resigned after 7 years.
— Kayvon Beykpour (@kayvz) May 12, 2022
Bruce Falck, Head of Sales and Head of Product, Business Unit, confirmed in tweet – After being deleted – he was also fired by Agrawal. Prior to joining Twitter, Falck held senior positions at Google and at BrightRoll, a programmatic video advertising company.
At Twitter, Falck led the creation of a programmatic advertising product.
Agrawal’s justification appears to be that Twitter is trying to move in ‘the other direction’. – Although including hiring freezes and leadership replacements. Leaked notes from Agrawal obtained by As Verge says: “At the start of the 2020 pandemic, we decided to invest aggressively to deliver great growth in our audience and revenue, and as a company we haven’t reached the mid-term milestones that convince us of these goals.
“Of course we are in the process of an acquisition and we don’t know when it will close. To manage the organization responsibly while strengthening our roadmap and work, we need to be consistently intentional about our teams, hiring and costs.”
Social media platforms appear to be in a do-it-yourself, do-it-yourself situation. Musk’s acquisition will set a new direction for the company, but advertisers must be vigilant about the potentially harmful environment. Billionaires with no direct experience in content moderation other than trying to stifle remarks against them were cited as out of depth.
It’s like watching a baby play with a blender behind a plexiglass barrier.
— Alex Stamos (@alexstamos) May 11, 2022
Meanwhile, despite the announcement of numerous advertising product and content partnerships at Newfronts, Twitter is not ashamed to justify itself to brands. The uncertainty surrounding the new leadership team and the potential for Musk to withdraw from the deal only exacerbates these issues.