29 July 2022
Elon Musk has announced that he has put the deal to acquire Twitter on hold for the time being. The reason behind the decision is related to uncertainty over the number of fake/spam accounts on the platform. A recent filing by Twitter revealed that the social media platform has less than 5% fake accounts out of monetizable daily active users during the first quarter.
He tweeted a link to a Reuters report from May 2nd that talked about Twitter's fake account figures. His tweet reads, "Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users." He is now interested in seeing the number reports for himself before proceeding with the rest of the formalities of the acquisition.
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
When Musk pitched his proposal to acquire Twitter, one of his major goals was to free the platform of all the fake and spam accounts that add up to the toxicity. It is speculated that concern is regarding reported numbers being lower than what he expected initially. On another hand, Twitter's filing did mention that these numbers are just an estimate and actual figures could be higher.
As one would expect, Musk's announcement has resulted in Twitter's shares plumming down by as much as 20% in premarket trading. The price per share went to $39.94 which is the lowest since Musk made his acquisition offer public. He is ready to pay $54.20 per share to buy Twitter which he has described as his "best and final offer".