Elon Musk has put the $44 billion purchase deal for Twitter Inc on hold over pending details about existing fake accounts. “The Twitter deal is temporarily on hold pending details supporting the estimate that spam/fake accounts represent less than 5% of users,” Musk said in a tweet.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk said in a tweet.
Shares of the social media company fell 20% in premarket trading. The company had estimated earlier this month that fake or spam accounts represented less than 5% of its monetizable daily active users during the first quarter. He also said he faced various risks until the deal with Musk was closed, even if advertisers would continue to spend on Twitter.
Musk, the world’s richest man and CEO of Tesla Inc, had said that one of his priorities would be to remove “spam bots” from the platform.
Problems with financing
Musk’s announcement coincides with the problems he is having to close the financing of the operation due to the collapse of Tesla’s shares, which act as collateral for a loan of 12,000 million dollars with a pool of banks, although they were not yet closed.
The billionaire separately sold 8,500 million dollars in shares of the electric car manufacturer and has caused a crisis in the company’s price. Since he announced his intention to buy Twitter, Tesla shares have plummeted 35% on the stock market, that is, they are worth about 300,000 million dollars less.