Elon Musk says $44 billion Twitter deal temporarily on hold; here's why

Soon after Elon Musk's post on the buyout, shares of Twitter Inc slumped 11 per cent in premarket trading

FP Staff May 13, 2022 15:48:54 IST
Elon Musk says $44 billion Twitter deal temporarily on hold; here's why

Elon Musk says $44 billion Twitter deal temporarily on hold - Reuters

Elon Musk Friday said that the Twitter deal, to acquire the microblogging site announced last month, has been temporarily put on hold. He said the deal has been halted as pending details supporting calculation that spam/fake accounts represent fewer than 5 per cent of users.

Along with his latest post, Musk attached a report by Reuters stating that Twitter Inc estimated in a filing on Monday that false or spam accounts represented less than 5 per cent of it mobilisation daily active users during the first quarter.

As per report, the microblogging site had 229 million users who were served advertisement in the first quarter.

Soon after the latest post by Elon Musk on putting the deal on hold, shares of Twitter Inc fell 11 per cent in premarket trading.

The Tesla CEO in April this year had inked a deal to buy social media giant Twitter for $44 billion. He had said that one of his priorities would be to remove spam bots from the platform.

"I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots and authenticating all humans," World's richest man Elon Musk had said.

Musk also had said, "Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated."

With inputs from agencies

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