Elon Musk Says $44 Billion Twitter Deal Temporarily on Hold
The purchase of Twitter by Elon Musk is not yet complete. Tesla Motors CEO Elon Musk announced the purchase of Twitter for $44 billion more than two weeks ago, but Musk has failed to complete the transaction.
Musk has recently stated that the Twitter purchase is “currently on hold,” needing “information supporting calculation that spam/fake accounts do fact constitute less than 5% of users.” This is in response to a report published earlier this month that said Twitter thinks spam and fake accounts make up fewer than 5% of its total user base. Elon Musk appears to dispute that only 5% of customers are affected.
If a bigger percentage of Twitter users are spam and bogus accounts, the company’s value will drop, making it less valuable to any buyer. Musk would have to offer less than $44 billion to acquire the social media platform. It’s unclear what’s going on behind the scenes, but Twitter’s stock has dropped as a result of the revelation.
Elon Musk has stated that he is still committed to the agreement, implying that this is only a last-minute negotiating strategy. In any event, we’ll keep this space updated when new information becomes available.