Elon Musk announced the acquisition of Twitter for $44 billion more than two weeks ago, but Musk has failed to complete the transaction.
Musk has recently said that the Twitter purchase is “currently on hold,” needing “information supporting computation that spam/fake accounts do fact constitute fewer than 5% of users.”
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
This is in response to a story published by Reuters earlier this month that said Twitter thinks spam and fraudulent accounts make up fewer than 5% of its overall user base. Elon Musk seems to dispute that just 5% of customers are affected.
If a bigger proportion of Twitter users are spam and fraudulent accounts, the company’s value will drop, making it less valuable to any acquirer. Musk would have to pay less than $44 billion to purchase the social media platform.
It’s unclear what’s going on behind the scenes, but Twitter’s stock has dropped as a result of the revelation.
Elon Musk has said that he is still committed to the agreement, implying that this is only a last-minute negotiating strategy. In any event, we’ll keep this area updated when new information becomes available.