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Twitter Takeover: Elon Musk Announces Suspension, Then Changes His Mind, Wall Street Action Collapses

The Tesla boss and the richest man on the planet instructed this Friday to suspend the takeover of Twitter. Before ensuring that the operation is still ongoing.

What a noise. This Friday, billionaire Elon Musk announced the suspension of his takeover of Twitter… before he changed his mind. “Twitter deal is temporarily on hold pending details supporting calculations that fake spam accounts actually represent less than 5% of users,” he wrote on his social media account earlier this month in the afternoon. Until then, after a few hours, make sure you are “still committed” to buying the company from the bluebird.

Statements with serious consequences. Shares of Twitter, which fell after the suspension was announced, limited their losses somewhat, but shed about 11% in electronic trading before Wall Street opened.

He also shared an article from Reuters, citing the social network’s estimates, which appeared in a report on Monday, that fake accounts and spam accounted for less than 5% of its 229 million monetized daily active users in the last trimester. In his plans for the network, the head of Tesla promised to “defeat spam bots”, authenticate all people and make his algorithms open source. A libertarian entrepreneur wanted to make it a “platform for free speech”.

Takeover offer made a month ago

Elon Musk has not yet specified the reasons for the suspension. One suggestion made would be that this valuation of fake accounts and spam could lead to a revision of the Twitter valuation that the billionaire relied on when he offered his $44 billion takeover bid on April 13. Indeed, with 5% of “fake” accounts, the number of monetized users may be lower than predicted, which could lead to the billionaire revising his proposal downward.

Twitter’s report indicates that its calculation for this estimate was made by taking “the average number of fake accounts or spam in samples during each monthly quarterly analysis period.” Potentially biased methodology that could cause the 5% percentage to “not accurately reflect the actual number of these accounts”. The real figure could be, she says, “higher.”

Recall, the founder of SpaceX, who recently acquired 9.2% of Twitter’s capital, proposed on April 13 to buy the entire company at a price of $54.20 per share and exit the Wall Street business. The proposal, initially resisted by the company’s board of directors, was finally accepted two weeks later. However, doubts were expressed about the ability of the businessman to collect the requested amount.

The group’s shares fell about 20% after the announcement in electronic trading ahead of the Wall Street opening. Tesla shares rose nearly 5% ahead of the Wall Street opening.

Update at 14:40 with the accuracy of Elon Musk

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