Elon Musk postponed buying Twitter, stock price slid to the bottom

The account has Mr. Musk’s authentic stamp on the Twitter logo – Photo: REUTERS

In an announcement on his Twitter account, which has more than 92 million followers, Musk said the Twitter acquisition “will be on hold” but did not specify how long. The reason of the South African-born billionaire is because the number of fake accounts on Twitter is too much, accounting for about 5% of the total users.

Reliable user metrics are considered important for assessing future revenue streams for a business, especially with social networks like Twitter.

Twitter shares fell 17.7 percent to $37.1 in pre-opening trading, the lowest level since Musk made the “best and last” offer of Twitter stock. to 54.2 USD/share.

Billionaire Musk, the world’s richest man and founder of electric car maker Tesla, has made deleting fake and spam accounts one of the focus of his $44 Twitter acquisition. billion USD.

When the deal was announced in late April, he vowed to make Twitter “better than ever” by authenticating users and blocking all automated spam tools.

Twitter did not immediately respond to requests for comment from news agencies. According to market observers, the 5% figure has existed for a long time, so it is difficult to understand why billionaire Musk has just released it and used it as a reason to postpone the acquisition.

Citing several stock analysts, Reuters news agency believes this is an attempt by Mr. Musk to lower the price of Twitter shares. However, it is also possible that the billionaire wants to withdraw from the agreement.

If the latter turns out to be true, according to analyst Dan Ives of the Wedbush Company (USA), the “circus show on Twitter” will turn into a “horror show on Friday the 13th”.

Interestingly, after the announcement of billionaire Musk, while the price of Twitter shares fell, the share price of Tesla increased.

Musk is the boss of both Tesla and SpaceX with an estimated fortune of $240 billion, according to Forbes. But his mastery style with shocking statements has often made him subject to criticism from many people, including officials.

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