Twitter shares plunged after Elon Musk said his plan to take over the social network was “postponed” until he could get more information about the number of fake accounts and spam accounts on the platform.
- Musk, whose $44 billion bid to buy Twitter was accepted by the company’s board of directors in April, said the takeover deal was “temporarily on hold” over concerns about the number of fake and spam accounts on the site.
- The billionaire said he was waiting for details to support the company’s calculations that fake or spam accounts make up less than 5% of its users.
- Twitter shares fell 25% in pre-market trading after the announcement.
- About two hours after his first tweet, Musk added that he was “still committed to the acquisition.”
Elon Musk has previously stated that removing spam and fake Twitter accounts will be one of his “top” priorities. While Twitter estimates that these accounts represent less than 5% of daily active users, the platform has miscalculated in the past, even incorrectly counting daily users for three consecutive years. The pause is the latest setback in Musk’s acquisition plans, which have faced initial board opposition and are yet to be finalized. The US Securities and Exchange Commission is also investigating the Tesla CEO after he was late in disclosing a large stake he acquired on Twitter, for which the shareholder also sued him.
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Musk’s announcement comes less than a day after Twitter announced the unexpected departure of two senior executives, a hiring freeze and cost-cutting measures, due in part to missing audience and audience growth targets.
Are you here. Shares in the electric car maker, which Musk co-leads and co-founded, jumped almost 6% in pre-trading on Friday morning after the announcement. Tesla’s share price has moved sharply in response to further developments related to Elon Musk’s Twitter deal.
Article translated from Forbes US – Author: Robert Hart
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