Elon Musk announced that he was suspending the purchase after Twitter announced the number of spam and fake accounts.
Tesla and SpaceX CEO Elon Musk recently reached an agreement to buy the social media platform Twitter for $54.20 per share for a total of 43.4 billion. However, the businessman recently announced that the company has temporarily suspended its acquisitions in a critical decision. Here are the details…
Elon Musk won’t buy Twitter for now
While everyone was waiting for the deal to be formalized and the transfer to take place, Elon Musk recently made a surprise announcement that he was suspending his acquisitions of Twitter. Following Elon Musk’s announcement, Twitter shares fell 19 percent in pre-opening trading.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
The reason behind this decision of the business person is a statement made by the platform about the number of spam and fake accounts. After Twitter announced some time ago that the number of such accounts was less than 5 percent of total users, Musk announced that he was suspending purchases of the platform until the relevant data was confirmed.
Of course, this situation also brought to mind the compensation that the businessman must pay if he withdraws from the agreement. Under the agreement signed between Musk and Twitter, $ 1 billion may have to be paid to terminate the contract. However, we will see if this situation will be needed together in the future.
Elon Musk first entered Twitter last month by buying 9.2 percent of passive shares. However, the businessman, who was not satisfied with this later and aspired to the entire company, managed to achieve his goal despite the tension he had with the board of directors. But the latest development could change all these situations.
