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After a dramatic push to acquire his most valuable play-time social media app, Tesla CEO Elon Musk has pressed the pause button on his $44 billion deal for Twitter. According to Reuters, Musk 'temporarily' put the deal on hold on Friday as he waits for data on the proportion of the social media platform's fake accounts.
Like clockwork, the popular social media platform's shares fell by 17.7% to $37.10 in premarket trading. It's almost like the time he fell out of love with Bitcoin and had its price tumbling down after a couple of tweets. His tweets are like the inversed version of the 'Midas touch."
The Tesla CEO, who recently became Twitter's largest shareholder with a 3.5 billion investment (9.2% stake), was overrun by Vanguard Group in mid-April after upping their investment to $4.5 billion (10% stake), WSJ, reported.
The announcement, made on his favorite communication channel, Twitter, shared a link to a story on Reuters that suggested the social media platform's fake accounts represented less than 5% of its total 229 million users.
The Reuters story published on May 2nd reported that the social media platform estimated the number of spam/fake accounts was less than 5% of its monetizable daily active users.
Last month, the South African-born billionaire made an offer of $54.20 per share, totaling the overall value of the transaction at approximately $44 billion. At the time, the social media company's shares were $46.85.
Twitter's shares have since fallen, and analysts speculate it's a strategy to lower the purchase price. An analyst at Hargreaves Lansdown, Susan Streeter, speculates Musk's move is a ploy considering the 5% metric has been out for some time.
It was highly improbable that the Twitter deal would close at the $44 billion marker after the social media platform's shares dropped below $46.85 for the first time on Tuesday.
Free speech advocates are wary of the platform's acquisition by a private entity, especially after Musk expressed his interest in installing an edit button. After taking over, the Tesla chief executive plans to eliminate spambots and make algorithms open-source to improve product trust.
The Tesla CEO, who recently became Twitter's largest shareholder with a 3.5 billion investment (9.2% stake), was overrun by Vanguard Group in mid-April after upping their investment to $4.5 billion (10% stake), WSJ, reported.
The announcement, made on his favorite communication channel, Twitter, shared a link to a story on Reuters that suggested the social media platform's fake accounts represented less than 5% of its total 229 million users.
The Reuters story published on May 2nd reported that the social media platform estimated the number of spam/fake accounts was less than 5% of its monetizable daily active users.
Last month, the South African-born billionaire made an offer of $54.20 per share, totaling the overall value of the transaction at approximately $44 billion. At the time, the social media company's shares were $46.85.
Twitter's shares have since fallen, and analysts speculate it's a strategy to lower the purchase price. An analyst at Hargreaves Lansdown, Susan Streeter, speculates Musk's move is a ploy considering the 5% metric has been out for some time.
It was highly improbable that the Twitter deal would close at the $44 billion marker after the social media platform's shares dropped below $46.85 for the first time on Tuesday.
Free speech advocates are wary of the platform's acquisition by a private entity, especially after Musk expressed his interest in installing an edit button. After taking over, the Tesla chief executive plans to eliminate spambots and make algorithms open-source to improve product trust.
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