Elon Musk said on Friday that his $44 billion cash purchase for Twitter Inc is “temporarily on pause” while he waits for evidence on the amount of fraudulent accounts on the social media platform.
Musk “temporarily” halted a $ 44 billion Twitter transaction while stock prices fell
Musk, the world’s richest man, agreed to buy Twitter on April 25 without conducting due diligence in order to persuade the San Francisco-based firm to accept his “best and last offer.” This could make it more difficult for him to claim that Twitter deceived him.
In premarket trade, Twitter shares plunged more than 20%, although they recovered some ground after Musk, the CEO of electric car maker Tesla Inc, published a second tweet suggesting he was still committed to the acquisition.
Since Musk inked his deal to acquire Twitter, technology stocks have plunged amid investor concerns over inflation and a potential economic slowdown.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk told his more than 92 million Twitter followers.
The spread between the offer price and the value of Twitter shares had widened in recent days, implying less than a 50% chance of completion, as investors speculated that the downturn would prompt Musk to walk away or seek a lower price.
“If we collectively try to figure out the bot/duplicate user percentage, we can probably crowdsource a good answer.”
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