Elon Musk Temporarily Suspends the Twitter Deal

Elon Musk suspends Twitter deal, pending details about fake accounts, sending its stock tumbling

Elon Musk announced yesterday that he will halt the Twitter deal until he receives more information about the number of fake accounts on the social media platform, and in another tweet about the topic two hours later, Musk added that he “remains committed to the acquisition.”

Twitter’s stock fell by 18% during the pre-market trading following the initial news, but it compensated some of its losses after the second tweet to end the trading round with a decrease of 9.7%.

Musk, who will serve as Twitter’s interim CEO if the deal goes ahead, will have to pay a termination fee of up to $1 billion if he decides to leave the deal, given that Musk’s fortune exceeds $220 billion. Read more [Elon Musk Seeks to Revitalize Twitter and Double its Revenue].

In a report published earlier this month, Musk revealed that during the first quarter, less than 5% of daily active users that generate profits were bots or fake and malicious accounts, and Musk, who is considered the richest man in the world, wants the company to assure him of this. Before proceeding with the deal, which is being funded in part by Oracle co-founder Larry Ellison and private equity firm Andreessen Horowitz. Read More [Musk Gives Up Some Tesla Shares to Complete Twitter Deal].

Musk said two days ago that he would lift the ban on former US President Donald Trump if he took control of Twitter, and earlier this month, Bill Gates warned that Musk would make Twitter “worse”, as he described it, and it is worth noting that Tesla shares traded today with a rise of nearly 7% during the pre-market hours. Read more [Twitter loses $5B in market value after banning Trump permanently from the platform].

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