Elon Musk is terminating the deal to buy Twitter. Clay Travis explains the consequences of Musk’s move on ‘Jesse Watters Primetime.’
Musk told the FCC that Twitter was not being fully transparent on the number of spam accounts on the site and pulled out of the $44 billion agreement.
“I think what’s going to end up happening, I’m looking right now, the stock price is down around $2 in the after-hours trading, which suggests what I think is the most likely outcome here, Jesse, which is Elon Musk and Twitter are going to engage in a protracted legal battle before they end up coming to an agreement on,” Clay said. “If I were predicting a purchase price somewhere less than $44 billion. Musk can argue that he’s getting some sort of compensation for what he believes are misattributed numbers of users on the Twitter platform. Twitter can still get a better value than they would if Musk were allowed to completely walk away and their stock was returned to the open market. It likely would fall into the twenties near around half of what Elon Musk is willing to purchase for.”
With Musk’s withdrawal, Twitter is now pursuing legal action against him.
“So based on the way the stock market is reacting here in the after-hours to this news, I think there’s going to be some sort of negotiated settlement,” Clay continued. “It may take a long time. Practical impact here if it doesn’t end up happening, Jesse, is Elon Musk can really be destructive to the overall Twitter brand and business because unlike you and me and the vast majority of people who use Twitter, he’s got the engineers and data analysts to be able to review what you basically call the firehose of data that they relinquish to him to allow him to try to determine how many of the accounts on this platform or real, how many are fake, how many of them are spam bots versus actual real people? And so to me, if Elon Musk ever publishes the data that he may have uncovered as a part of this investigation, that could be unbelievably crippling to the overall impact of Twitter.”
“Remember, only 20% of Americans, even based on Twitter’s own numbers, are on Twitter. And only one in every 50 people ever bothers to actually send a tweet,” Clay said. “We’re talking about 2%, roughly, of the American public. It’s not as big as you would think that it might be.”
Clay said Musk buying Twitter would be a victory for right-wing and conservative thought and content-neutral platforms.
“We need it.”