Elon Musk put the Twitter purchase on pause. The company's shares collapsed

The BBC News Russian Service app is available for IOS and Android . You can also subscribe to our Telegram channel.

Elon Musk

image copyrightReuters

Elon Musk put the Twitter purchase on pause. The businessman said the $44 billion deal to buy the campaign is on hold until he receives information about the number of fake social media accounts.

The company’s shares immediately fell 25%, although they later recouped part of the fall after the entrepreneur wrote in a new tweet that he still intends to see the deal through.

Elon Musk claims he is waiting for information confirming calculations that fake accounts on the social network make up no more than 5% of the total number of daily active users.

However, analysts do not exclude that he is trying to bring down the price or even looking for an excuse to refuse to buy the company.

Here is Musk’s tweet, after which Twitter shares fell 25% in pre-market trading.

However, a few hours after this tweet, Musk said that he was still going to buy Twitter.

Under the terms of the deal, whoever changes their mind will have to pay the other party a penalty in the amount of $1 billion.

About two weeks ago, Twitter reported that in the first three months of this year, fake accounts accounted for less than 5% of its daily active users.

However, the company made a reservation that it is difficult to accurately determine the number of such accounts using the available tools.

“The actual number of fake accounts may be higher than we thought. But we are constantly striving to improve our ability to estimate their total number,” the company said in a statement.

Musk, the richest man in the world according to Forbes magazine, is now studying the company’s report.

Twitter has long had a problem with fake accounts that are used to post paid content, so-called bots.

The day before, two Twitter executives announced they were leaving the company. Kayvon Bakpour, head of Twitter’s consumer division, and Bruce Falk, head of revenue, both said they didn’t leave of their own free will.

The company said this week that it had suspended hiring for new hires except for business-critical roles.

Dan Ives, technical analyst at investment firm Wedbush Securities, says Musk’s tweet turns “the Twitter circus into a Friday the 13th horror show.”

If Musk still decides to make a deal, some new option will appear on the negotiating table, the analyst said.

Elon Musk is Tesla’s chief executive and has already sold a large chunk of his shares in the electric car maker to fund the takeover of Twitter.

He sold $8.5 billion worth of Tesla shares and planned to borrow another $12.5 billion against his shares, although that amount was later reduced to a $6.5 billion loan.

Tesla’s share price plummeted after Musk said he wanted to buy Twitter due to market fears that he would have to sell more shares.

But after Musk wrote that the deal was on hold, Tesla’s share price jumped 6.7% in pre-market trading.

Related Posts

How many Patriots does Ukraine need to seriously improve the defense of the sky: Lieutenant General explained

Ukraine needs dozens of Patriot air defense systems, the expert believes. Igor Romanenko said how many Patriot air defense systems can strategically improve the situation with the…

Attempts on Zelensky’s life show that he is a serious threat to the Russian Federation, – GUR

The whole world must understand that Russia is not a civilized enemy, they are insidious terrorists who use the most disgusting base methods, outside the framework of…

Microsoft has come up with a new restriction for users of pirated Windows

The new version of the OS will block the settings of the Edge browser, as a result of which the user cannot add it for himself. Microsoft…

Zelensky awarded the legend of French cinema Alain Delon with the order

The actor received the Order of Merit for Ukraine. Alain Delon received the Ukrainian award / photo gettyimages.com President of Ukraine Vladimir Zelensky awarded the iconic French…

“The fate of the war is being decided”: Tusk called on Polish farmers to end the blockade of the border with Ukraine

The situation that Ukraine is currently in is very difficult due to the recent series of Russian bombings. Tusk called on farmers to stop blockade of the…

Josh Hartnett as a maniac: the trailer for M. Night Shyamalan’s new film “Trap” has been released

The film is due to be released in Ukrainian on August 8, 2024. The main role in “West” was played by Josh Hartnett / screenshot from YouTube…

Leave a Reply

Your email address will not be published. Required fields are marked *