Shares Lose Massively: Elon Musk Suspends Twitter Acquisition

Stocks lose massively
Elon Musk suspends the acquisition of Twitter

Elon Musk’s Twitter deal is shaky. The Tesla boss writes – on Twitter – that he first wants information that fake accounts represent more than five percent of users. Until then, he temporarily puts his purchase project on hold.

Elon Musk’s $ 44 billion acquisition of Twitter is on hold. This was announced by the Tesla boss and justified it with the lack of information on the number of spam and fake accounts with the SMS service from the USA. It must first be shown that these represented less than five percent of users.

The online service posted this five percent estimate earlier in the week. Musk had previously stated that he wanted to ban accounts used to send spam messages from the platform.

Shares of Twitter quickly fell nearly a quarter in pre-market trading following Musk’s tweet, to be trading at around $ 34.50. This is very different from the $ 54.20 per share Musk promised shareholders. The paper went out of business Thursday at $ 45.08, a sign of investor skepticism that Musk is actually closing the deal.

Twitter was initially unavailable for comment. The US group highlighted various risks in relation to the acquisition of Musk, including the question of the extent to which advertisers would continue to operate on the platform.

The boss of the electric car company Tesla had agreed with the board of directors of Twitter a deal worth about 44 billion dollars. But it still depends on a sufficient number of shareholders who want to sell their shares to him. Twitter and Musk previously wanted to complete the acquisition by the end of the year. In recent months, it has already bought a good 9% stake in Twitter on the stock exchange.

About the author


Leave a Comment