“Twitter deal is temporarily on hold pending details that spam/fake accounts actually represent less than 5% of users,” Musk wrote on Twitter today.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
The news sent Twitter shares down more than 20% in pre-market trading. According to a report published by “CNN”.
Musk gave few details regarding his plans for the social media company, although he did talk a lot regarding fake accounts that promoted spam. He also says the company has been very quick to remove accounts that in return violate community standards.
Even as Musk worked to secure funding for the acquisition, speculation over whether the deal would take place has been since Twitter’s board approved the offer on April 26.
On Tuesday, Musk said he would allow former President Donald Trump to return to Twitter once the acquisition is complete.
Wall Street analysts weren’t convinced Musk might buy Twitter either, at least not at $54.20 a share. The agreed target price was less than $52.
Part of the problem is Twitter’s connection to Tesla’s fate. Musk, the chief executive of the leading electric car company, had been planning to borrow once morest a portion of his stake in Tesla to fund the deal, but Tesla stock has been dropping rapidly along with most others this year.
Musk’s sale of a large number of Tesla shares to help fund his deal also put pressure on the automaker’s shares. Having already committed a significant portion of his Tesla stock elsewhere, that doesn’t leave him much support should he need to raise more money to complete the Twitter acquisition.
Tesla stock rose 6% in premarket trading on Friday.
