Twitter shares fall 35.11% this week on investigations into the company that could reveal its owners have exaggerated the number of subscribers.
Twitter falls on the stock market after Elon Musk this week paused the purchase of the company, potentially due to fraud of the number of subscribers on the platform.
Twitter originally reported to billionaire Musk that only 5% of subscribers with Twitter accounts are bots, already quite a high number. But it seems that number could be a higher number of up to 60s or 70s.
The suspicions arose as a result of Musk’s team reviewing internal data that shows an inconsistency in the number of subscribers on the platform, which shows a low percentage of engagement, which could indicate that Twitter has long ceased to be relevant and the company owners had been inflating the numbers to keep Bots and Trolls investors and companies happy. This discovery, if confirmed, would potentially leave Twitter exposed to lawsuits for fraud from investors, companies and even governments that have paid for access to monitor radical voices on the platform.
Elon Musk announced that the deal to buy Twitter was “temporarily” suspended pending the results of an investigation into the number of fake accounts on the platform.
Previously, the billionaire indicated that one of his priorities for the platform would be to eliminate “spam bots”. At the end of April, the company reported 12 million new users on the former. quarter, marking one of its biggest increases since the start of the coronavirus pandemic.
The platform’s bets rose 0.6% after the news. Musk struck a deal to buy Twitter in April, offering $44 million and promising to make Twitter private and uncensored.