Elon Musk has decided to temporarily halt his acquisition of Twitter (NYSE: TWTR), in order to allegedly conduct due diligence on the social media company’s fake accounts data.
Musk on Friday tweeted that his planned $44 billion purchase of the San Francisco-based company was put “temporarily on hold” while he awaits additional data on the actual number of spam accounts cluttering the site. The Tesla CEO cited a previous Reuters article that outlined the proportion of fake Twitter accounts, which Twitter later suggested may actually be substantially higher.
Initially, when Musk agreed to the acquisition on April 25, he decided to forego due diligence in an effort to secure an acceptance of his “best and final offer.” Although he assured his 92 million followers that he’s still committed to buying the company, shares of Twitter were sent trending further downward.
The tech sector overall has substantially plunged over the past several weeks amid a broader selloff linked to surging inflation and risks of a potential recession. The difference between Musk’s initial offer price and the Twitter stock’s value has further diverged in the past week, prompting speculation that the Tesla CEO may abdicate his commitment or negotiate a reduced price.
Information for this briefing was found via Twitter and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.