Elon Musk once once more bombarded Twitter, saying he was “temporarily put on hold”. The remarks caused Twitter’s share price to plummet by as much as 20% at one time.
According to major foreign media including Cnet and CNBC, Musk posted on his Twitter on the 13th (local time), “Temporarily suspend the acquisition until we provide concrete evidence that Twitter’s spam and fake accounts account for less than 5% of all users. do,” he declared.
Musk’s actions are demanding grounds for what Twitter said in a filing with the U.S. Securities and Exchange Commission (SEC) that less than 5% of its 226 million users are spam or false accounts.
Musk pressured Twitter to suspend the acquisition until concrete evidence is provided.
Twitter shares have plummeted 20% since the news broke.
However, the share price recovered following Musk posted a follow-up tweet saying he was still interested in the acquisition. In the end, Twitter shares fell 9.6% to close at $40.72.
■ What was the intention of Musk’s sudden remark?
It was on April 25th that Elon Musk’s takeover of Twitter became official. The Twitter board, which once warned of triggering a “poison feel,” officially announced on the same day that it was accepting Musk’s proposal.
The acquisition price is $54.20 per share on Twitter. It was a very large acquisition contract worth a total of 44 billion dollars (regarding 55 trillion won).
However, since then, concerns over inflation and concerns over an economic slowdown have fueled tech stocks overall weakness.
Twitter, too, has not been immune from its continued downtrend. In the end, it recorded $40.72 on that day, down more than 25% from the proposed acquisition price of $54.20.
This situation is giving strength to the prospects that Elon Musk’s plan to take over Twitter may be thwarted, foreign media reported.
Musk reserves the right to request specific information regarding its sales activities under its contract with Twitter. Requests for information regarding spam and fake accounts are also an extension of this activity.
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However, there is also an analysis that Musk’s move may be to raise the mood for renegotiation.
Although the Twitter side responded that Musk’s action was a violation of the contract, foreign media reported that it was encouraging that Musk said in a subsequent tweet that “there is no change in the intention to take over.”