Twitter acquisition deal may have changed?
Musk, who announced the acquisition of Twitter earlier, said the deal was on hold pending details to prove the calculation that “spam or fake accounts” account for less than 5% of users.
But after the news came out, Twitter shares plunged by 25%, while the relative Tesla shares rose by about 6%.
44 billion dollars to buy Twitter
It is reported that earlier Tesla and SpaceX Chief Executive Officer announced the acquisition of Twitter for $44 billion, when the offer price was $54.20 per share, a price 38% higher than the closing price before Musk announced his shareholding.
Musk’s offer was also unanimously approved by the board of directors at the time, and the deal is also expected to close within 2022, subject to approval by Twitter shareholders and regulators and other conditions.
Once the deal is completed, Twitter will become a privately held company.
And now Musk tweeted through Twitter that the acquisition deal was “on hold” because he wanted to see a report on the company’s calculations for “spam or fake accounts” of less than 5% of the daily active user base (226 million people).
Twitter reported earlier that it had roughly estimated the number of fake accounts on the platform to be less than 5 percent in the first quarter of 2022, but the statistics may not be accurate and the true number may be higher than expected.
Twitter has also been accused of making mistakes in calculating the number of daily users over the past three years.
In any case, the transaction will not affect the completion of the acquisition will need to wait for Musk’s further statement.
