“The Twitter deal is temporarily on hold pending details that spam/fake accounts actually make up less than 5% of users,” Musk tweeted today.
Twitter deal is temporarily on hold while details are pending supporting calculations that spam/fake accounts represent less than 5% of users https://t.co/Y2t0QMuuyn
– Elon Musk (@elonmusk) May 13, 2022
The news sent Twitter shares up more than 20% in pre-market trading. According to a report released by CNN.
Musk provided some details about his plans for the social media company, though he said a lot about fake accounts promoting spam. He also said the company was very quick to remove accounts that violated community standards.
While Musk is working to get funding for the acquisition, there has been speculation about whether the deal will continue since Twitter’s board approved the proposal on April 26.
On Tuesday, Musk said he would allow former President Donald Trump to return to Twitter when the deal was finalized.
Wall Street analysts aren’t convinced Musk can buy Twitter, even if not at $ 54.20 per share. The agreed target price is less than $ 52.
Part of the problem is Twitter’s connection to Tesla’s fate. Musk, the chief executive of the leading electric vehicle company, plans to borrow part of its stake in Tesla to finance the deal, but Tesla’s stock is rapidly falling this year along with most other companies.
Musk’s sale of large amounts of Tesla shares to finance his deal also put pressure on the automaker’s shares. Since he has already invested a large portion of his Tesla shares elsewhere, that doesn’t leave him much support if he needs to raise more money to complete the acquisition of Twitter.
Tesla shares rose 6% in premarket trading on Friday.
Source: Al Akhbar