Elon Musk puts $44 billion Twitter deal on hold and stocks plummet

FILE PHOTO: Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Elon Musk’s Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Elon Musk on Friday temporarily put on hold its agreement to $44 billion for Twitter Inc (TWTR.N), citing pending details in support of the calculation that the spam and fake accounts effectively represent less than 5% of users. Shares of the social media firm fell 17.7% to $37.10 in premarket trading.its lowest level since Musk revealed his involvement in the company in early April and subsequently made a “best and final” offer to take it private by $54.20 per action.

The implied probability of the trade closing at the agreed price fell below 50% for the first time on Tuesdaywhen shares of Twitter fell below $46.75. Twitter had calculated earlier this month that fake or spam accounts represented less than 5% of its monetizable daily active users during the first which it registered 229 million users who received advertising.

The Twitter deal is temporarily on hold pending details supporting the calculation that fake or spam accounts effectively represent less than 5% of users.Musk tweeted on Friday.

Muskthe richest man in the world and a self-proclaimed free speech absolutist, had said that one of his priorities would be to eliminate “spam bot” from the platform.

Twitter did not immediately respond to a request for comment. The representatives of Musk or your company Tesla Inc. (TSLA.O) were not immediately available for comment.

The social media company had said it faced several risks until the deal with Musk was closed.including whether advertisers would continue to spend on Twitter amid “potential uncertainty regarding future plans and strategy.”

Musk has been critical of the moderation policy of Twitter. He has said that he wants the algorithm Twitter give priority to tweets that are public and has been against giving too much power in the service to companies that advertise. Earlier this week, he said he would reverse Twitter’s ban on former US President Donald Trump. when you buy the social media platform, signaling your intention to reduce the moderation of the site.

Changes in the social network

Twitter confirmed this Thursday the departure of two senior executives and that most hiring has stoppedwhile Elon Musk prepares to become the new owner of the global messaging platform. Kayvon Beykpoura general manager who leads research, design and engineering at Twitter, leaves with the product leader Bruce Falka Twitter spokesperson told the AFP.

Beykpour, however, said he was fired from the company. “The truth is that this is not how I imagined leaving Twitter, and it was not my decision,” he said in a tweet. Beykpour, who was on paternity leave when he received the news.

He added that the head of Twitter, Parag Agrawal asked him to leave, arguing that “he wants to take the team in a different direction.”

“I clarify that I was also fired by (Parag),” Falck tweeted.

Agrawal’s future would also be in doubt after Musk’s bold takeover bid.

(With information from Reuters and AFP).-


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