On Friday, Elon Musk said that his $44 billion business deal to acquire Twitter was temporarily on hold. Further, he cited the delay and told pending details on fake and spam accounts. Musk took Twitter to say that his deal was temporarily on hold, pending further information supporting the calculation that fake and spam accounts do indeed represent below five percent of users.
Elon Musk, CEO of Tesla Motors, said that his planned forty-four billion dollars purchase of Twitter is ‘temporarily on hold’ pending details, reinforcing the calculation that the number of fake accounts represents less than five percent of Users. pic.twitter.com/xYzpIspVxY
— Live News Now (@LiveNewsNow6) May 14, 2022
After the announcement, Twitter shares plumed twenty percent in premarket trading. The social media company didn’t respond immediately to a request for comment. Earlier this month, Twitter projected that spam or false accounts represented less than five percent of its monetizable daily active users during the initial quarter of this year.
Additionally, it said that the company faced many risks until the deal with the billionaire was closed, including whether advertisers would continue to spend on Twitter. Previously on Friday, the world’s richest person tweeted that he is still committed to acquiring Twitter. However, the problem of fake Twitter accounts is not a secret.
Musk Stock Rising and Twitter Stock Falling
On Friday, stocks of Tesla and Twitter swung sharply in opposite directions, Tesla shares were rising 5.7 percent, and the Twitter stock was plumping 9.7 percent. However, Tesla shares fell since it revealed Twitter had become a Musk target. Shares of Tesla lost one-quarter of their value in April and dropped from around $1150 in early April when Musk confirmed that he had taken a huge stake in Twitter to about $769.59 yesterday.
Earlier this week, Forbes estimated its net worth of Musk at $240 billion and was $232 billion as of Friday. In 2017 academic researchers bid a survey of all active English-language Twitter accounts and projected that around fifteen percent of them were bots of some kind. So Tesla shares may also benefit from the bot accounts on social media over the years.