Elon Musk announces “temporary suspension” of the purchase of Twitter
Tycoon Elon Musk reported the “temporary suspension” of his millionaire purchase of Twitter. In his message, he explained why...
- Tycoon Elon Musk reported the “temporary suspension” of his millionaire purchase of Twitter.
- In his message, he explained why the purchase is being paused.
- The announcement comes a day after two directors of the popular social media were fired.
Magnate Elon Musk announced on Friday, May 13, that his plans to acquire Twitter for $44 billion are “on temporary hold,” pending details about existing spam and fake accounts on the social media platform, in a new twist, given the signs of internal turbulence caused by the purchase offer, reported the news agency AP.
In a tweet made just before 6 a.m., the billionaire owner of the automaker Tesla posted a link to an article published by Reuters on May 2, citing a Twitter financial report that the fake or fake accounts were estimated to be spam accounted for less than 5% of “monetizable daily active users” in the first quarter of the year.
Elon Musk pauses buying Twitter
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Elon Musk wrote, indicating his skepticism about this data.
It was not clear at the time if this could derail the deal. Shares of Twitter and Tesla soared in opposite directions: Those of the social network lost 18%, while those of the automaker, which Elon Musk proposed using to help finance the purchase, gained 5%. In a subsequent tweet, posted at 7:50 a.m., he simply said, “Still committed to acquisition.”
Twitter already fired two important managers
According to the AP report, investors have had to assess Elon Musk’s legal problems, in addition to the possibility that the acquisition of Twitter could be a distraction when running the most valuable automaker in the world: Tesla, the electric car giant.
The news agency recalled that Elon Musk’s tweet came a day after the platform fired two of its top managers. Twitter said it has halted most hiring, except for critical positions, and is “reducing non-labor costs to ensure we are being responsible and efficient.”
Will Trump return to Twitter?
In a note to employees Twitter CEO Parag Agrawal said the company has fallen short of its growth and profit targets after “aggressive” investment to expand its user base and revenue, the AP report also noted.
Elon Musk remains firm in his plan to reverse the ban on Twitter against former president Donald Trump if he finishes finalizing the agreement to buy the social network, AP mentioned in another report.
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