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What if Musk is right about Twitter's bot problem

 1 year ago
source link: https://finance.yahoo.com/news/what-if-musk-is-right-about-twitters-bot-problem-120525144.html
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Elon Musk ‘doesn’t have a leg to stand on’ in Twitter lawsuit: Analyst
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What if Musk is right about Twitter's bot problem?

Daniel Howley
·Technology Editor
Sat, July 16, 2022, 9:05 PM·5 min read
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Elon Musk could soon face off against Twitter in a Delaware court over whether he should be forced to buy the social media company. Musk’s excuse for backing out? Bots. Specifically, how many bots run rampant on Twitter.

In trying to back out of the $44 billion deal, Musk has asserted that Twitter hasn’t provided enough data on the platform's number of bots — automated accounts that can be benign but can also be used for nefarious purposes like bilking users out of their cash through get-rich-quick schemes.

The way Musk tells it, Twitter dramatically underestimates the number of bots on the social network when it claims they constitute less than 5% of its monetizable daily active users. Musk has estimated, without offering a source, that bots make up as many as 20% or more of Twitter’s user accounts.

20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher.

My offer was based on Twitter’s SEC filings being accurate.

Yesterday, Twitter’s CEO publicly refused to show proof of <5%.

This deal cannot move forward until he does.

— Elon Musk (@elonmusk) May 17, 2022

But let’s say, as an exercise, that Musk’s prediction is right and Twitter’s numbers are off by a wide margin. If true, the social network would likely face a serious reckoning from advertisers and users.

Too many bots would mean advertisers aren’t getting their money’s worth when they purchase ads on the platform. As for users, it would mean fewer people than they thought are seeing their tweets.

In its lawsuit against Musk, Twitter contends that it’s “bent over backwards” to furnish him with plenty of information about how it calculates the number of bots on the platform. What’s more, the company says it’s been making the 5% estimate for years, and that it “applies significant judgment” when counting bots.


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