Elon Musk put his $44 billion deal for Twitter Inc “temporarily on hold” on Friday while he awaits data on the proportion of its fake accounts, sending the shares in the social media platform plunging.Twitter shares fell 17.7% to $37.10 in premarket trading, their lowest level since Musk disclosed his stake in the company in early April and subsequently made a “best and final” offer to take it private for $54.20 per share.
Elon Musk put his $44 billion deal for Twitter Inc “temporarily on hold” on Friday while he awaits data on the proportion of its fake accounts, sending the shares in the social media platform plunging.
Twitter shares fell 17.7% to $37.10 in premarket trading, their lowest level since Musk disclosed his stake in the company in early April and subsequently made a “best and final” offer to take it private for $54.20 per share.
Twitter did not immediately respond to a request for comment. Musk’s representatives or his company Tesla Inc were not immediately available for a comment.Musk has been critical of Twitter’s moderation policy. He has said he wants Twitter’s algorithm to prioritize tweets to be public and was against too much power on the service to corporations that advertise.Earlier this week, he said he would reverse Twitter’s ban on former U.S. President Donald Trump when he buys the social media platform, signaling his intention to cut moderation of the site.The social media company had said it faced several risks until the deal with Musk is closed, including whether advertisers would continue to spend on Twitter amid “potential uncertainty regarding future plans and strategy.” Musk will have to pay a termination fee of $1 billion if he walks away from the deal.
