Elon Musk said the deal with Twitter has been suspended until details of fake accounts are revealed

Elon Musk during an event at SpaceX headquarters in Hawthorne, California, USA, on Thursday, October 10, 2019.

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Elon Musk announced on Friday that his Twitter transaction has been suspended until he receives more information about the number of fake accounts on the social networking platform.

In a subsequent tweet about two hours later, Musk added that he was “still looking to acquire.”

Shares of Twitter fell sharply by 18% in pre-market trading after the initial announcement, but cut some losses after the second tweet. A spokesman for the social media company did not immediately respond to CNBC’s request for comment.

Tesla CEO Musk announced last month that he intends to buy Twitter for $ 44 billion, and he previously wrote that one of his top priorities would be to remove “spam bots” from the platform.

Prior to Friday’s announcement, the company’s market value fell to $ 9 billion below the bid price due to fears about the deal.

Musk, who is expected to act as Twitter’s interim CEO when the deal is concluded, will have to pay $ 1 billion if he wants to leave. The mask is worth more than $ 220 billion.

Earlier this month, Twitter estimated that less than 5% of its daily active users who could be monetized in the first quarter were bots or spam accounts.

Musk, who on paper is the richest man in the world, now wants the company to confirm this before he continues the deal, which is partly funded by Oracle co-founder Larry Allison and venture capital company Andreessen Horowitz.

The San Francisco-based social media company said in a statement that in the first quarter it had 229 million users who served advertising.

On Tuesday, Musk said he would lift Twitter’s ban on former President Donald Trump if he took over the campaign.

“Permanent bans should be extremely rare and really reserved for accounts that are bots, or scams, spam accounts … I think it was wrong to ban Donald Trump,” Musk said at the Future of the Car conference on FT Live. “I think it was a mistake because it alienated much of the country and ultimately did not lead to Donald Trump not having the right to vote.”

Earlier this month, Bill Gates warned that Musk could make Twitter “worse.” Speaking at the summit of the CEO of The Wall Street Journal, Gates said it was unclear how Musk would change Twitter if he became the owner, and also expressed concern about the spread of misinformation on social media platforms.

Gates then asked what Mask’s goal was on Twitter and whether his desire to promote free speech was reasonable. “What are his goals for that in the end? Does this fit the idea of ​​a less extreme lie that is spreading so fast [and] strange conspiracy theories? Does he share that goal or not? ”Gates said.

Before Musk made his bid to buy Twitter, he failed to disclose more than 9% of the company’s stock under the SEC’s mandatory 10-day window.

The information states that the Federal Trade Commission is checking the time of disclosure of information to the Masks. Bloomberg later stated that the FTC is separately considering the acquisition itself, although many experts do not expect the deal to raise concerns about antitrust law.

The FTC did not disclose ongoing investigations, and an FTC spokesman declined to comment.

Tesla’s stock price rose nearly 7% on Friday in pre-market trading.

Susanna Streeter, a senior investment and markets analyst at Hargreaves Lansdown, said some are likely to ask whether fake accounts are the real reason for this procrastination tactic.

“The $ 44 billion price tag is huge and it could be a strategy to recoup the amount he is willing to pay for the purchase of the platform,” she said in a statement.

Additional report by Lauren Feiner of CNBC.

Elon Musk said the deal with Twitter has been suspended until details of fake accounts are revealed

Source link Elon Musk said the deal with Twitter has been suspended until details of fake accounts are revealed

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