BusinessDay

Elon Musk puts Twitter deal on hold

Elon Musk, Tesla CEO, who has been in talks with Twitter over full acquisition, has put the deal temporarily on hold on Friday.

The Tesla Boss disclosed this on his official Twitter handle, citing a recent report from Twitter’s first quarter earnings released on Monday to be the cause of the suspension.

“Twitter deal temporarily on hold pending details supporting calculation that spam and fake accounts do indeed represent less than 5 percent of users,” Musk tweeted.

According to the report, spams and false accounts represented fewer than 5 percent of Twitter’s monetized daily active users during the first quarter of 2022.

The microblogging platform disclosed that it had 229 million users who were served advertising in the first quarter.

Meanwhile, this disclosure came days after the CEO inked a deal to buy Twitter at $44 billion, with a major focus on removing spam bots from the platform and fighting against other related misconducts on twitter.

Read also:  Here are 7 investors backing Elon Musk’s Twitter acquisition

Twitter noted in the filing that it has faced several risks before inking the deal with Musk which includes whether advertisers would continue to spend on twitter and potential uncertainty regarding the future plans and strategy.

Meanwhile, many Twitter users reacted with disappointments to the announcement.

Peter Schiff, an American-based stock broker and financial commentator took to his official account @peterschiff to slam Musk on the announcement.

“It looks like I was right all along. You never actually intended to buy Twitter. You were bluffing the entire time. How many Twitter shares did you sell before tweeting this announcement,” Schiff tweeted.

Similarly, another Twitter user @MrSkibz backed the stockbroker up by tweeting against Musk’s announcement.

“Ok I read this twice and it literally sounds like you aren’t buying twitter because it makes less money off of bots than expected. So you were hoping to remove them or profit off them. Which of them, just say the deal is on hold because the price is bad,” he tweeted.

Nikolaus Pluta, a Twitter user also said, “You were one of my heroes, but reopening Donald Trump’s Twitter account did it for me. Nice work on Tesla but I am done with you regarding Twitter.”

Meanwhile Musk recently raised $7 billion to support his $44 billion deal to buy Twitter.

A Securities and Exchange Commission filing made public recently disclosed that Musk received equity commitment letters of about $7.14 billion from a group of 19 investors.

According to the filing, the biggest contribution comes from Prince al-Waleed bin Talal of Saudi Arabia, who agreed to retain a stake in Twitter valued at $1.9 billion following Musk’s takeover and other investors and friends who pleaded their support.

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