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Elon Musk’s $44 billion purchase of Twitter ‘temporarily on hold,’ Tesla billionaire says

LONDON – Elon Musk said on Friday that his plan to buy Twitter for $ 44 billion is “temporarily on hold” as he tries to pinpoint the exact number of unwanted and fake accounts on the social networking platform, another reversal in the middle. signs of internal turmoil for the proposed acquisition.

Musk, who has expressed a desire to clarify Twitter’s problem with “spam bots” imitating real people, seemed to question whether the company had mentioned them too little.

In a tweet, billionaire Tesla linked to a Reuters story on May 2 about a quarterly Twitter report that estimated that fake or unwanted accounts accounted for less than 5% of its “daily active revenue-generating users.” company in the first quarter.

“Twitter is temporarily trading on hold, pending details that support the estimate that spam / fake accounts actually represent less than 5% of users,” Musk said, pointing out that he was skeptical that the number of non-genuine accounts was so low. .

It was not clear if the issue could spoil the deal. Shares of both Twitter and Tesla jumped sharply in opposite directions, with Twitter falling 18% and shares of Tesla that Musk had suggested used to help fund the Twitter deal. jump 5%.

Musk has already sold more than $ 8 billion worth of shares in Tesla to finance the purchase.

Wedbush analyst Dan Ives, who follows both Tesla and Twitter, said Musk’s “weird” tweet would lead Wall Street to either believe the deal was likely to collapse or that Musk was trying to negotiate a lower bargain price or just move away from facing a $ 1 billion fine.

“Many will see it as Musk using these archiving / spam Twitter accounts as a way out of this deal in a highly volatile market,” Ives wrote.

He added that Musk’s use of Twitter instead of a financial statement for the announcement was worrying and “sends this whole deal into a circus show with lots of questions and no specific answers about the future of this deal”.

Investors had to weigh the legal problems for Musk, as well as the possibility that the acquisition of Twitter would distract from the operation of the most valuable car industry in the world.

Musk’s tweet comes a day after the social networking company fired two of its top executives. Twitter said the company was cutting most hiring, except for critical roles, and was “cutting costs outside of work to ensure we are responsible and efficient.”

In a note sent to employees and confirmed by Twitter, CEO Parag Agrawal said the company has not recorded growth and revenue milestones since the company began investing “aggressively” to expand its user base and revenue.

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AP Business author Michelle Chapman in New York contributed to this report.

Copyright © 2022 by the Associated Press. All rights reserved.

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Elon Musk’s $44 billion purchase of Twitter ‘temporarily on hold,’ Tesla billionaire says Source link Elon Musk’s $44 billion purchase of Twitter ‘temporarily on hold,’ Tesla billionaire says

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