Last month, the South-African business magnate, Elon Musk secured the microblogging website for $44 billion. There was a congregation of board members a day before to discuss the deal. Musk revealed that the aim is to make the platform private for a liberal environment on the application for people to express their opinion. However, in a new tweet, shocking information has come forward that the deal is still on hold and is not greenlit yet.
Elon Musk Tweeted Why The Deal Is Not Yet Sealed?
The Tesla mogul has not yet become the owner of the micro-blogging application. On Friday, he tweeted, “Twitter deals temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”
He linked a Reuters article that disclosed that the Monday filing had revealed that the fake or spam accounts comprise less than 5% of monetizing users. This has impacted the faith of the shareholders leading to a 20% drop in pre-market trading. Morgan Stanley has invested in Musk’s venture. He received funding from Larry Ellison, an investor at Tesla of $1 billion, Binance financed $500 million, and others too invested heavy amounts of money.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
Earlier, the SpaceX owner had told his plans about revamping the app, but he had not mentioned the BOT or spam accounts. Wall Street analysts weren’t convinced of Musk’s ability to buy Twitter, either — at least not at $54.20 a share. The consensus target price was below $52, and the vast majority put a “hold” rating on the company’s stock.
The board members also tried to apply the “poison pill” strategy to deter Musk from the buy-out, and let a second bidder get a chance. Now, the hovering cloud is Tesla as Larry Ellison has financed 1 billion dollars for the buy-out and Elon sold the majority of the stocks of Tesla to buy Twitter. This has led to skepticism among the shareholders and buyers of Tesla.
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