The $ 44 billion agreement to buy Twitter by the world’s richest man Elon Musk is temporarily suspended. The reason is according to the server BBC is that the entrepreneur paused over the number of fake or spam accounts and wanted details about them.
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“The agreement with Twitter has been temporarily suspended until details are available to support the calculation that spam / fake accounts actually account for less than five percent of users,” Musk said on Twitter. He later wrote that he was still determined to complete the acquisition.
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Following this announcement, Twitter shares fell 25 percent.
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Almost two weeks ago, Twitter announced that fake accounts accounted for at least five percent of active users in the first three months of this year. Musk is researching this information and wants to clear the platform of fake accounts.
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However, the company said its estimate of the number of false accounts may not be realistic. “The actual number of fake or spam accounts may be higher than we estimated. We are constantly working to improve our ability to estimate the total number of spam accounts, “she said.
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Still committed to acquisition
— Elon Musk (@elonmusk) May 13, 2022
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Musk agreed to take over the company last month. Under the terms of the agreement, if Twitter or Musk cancels the meeting, it must pay the other party severance pay of one billion dollars (24 billion crowns).
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Musk said this week that the transaction could be completed in two to three months at best. By taking over the company, Musk would gain control of the social network used by millions of users, including politicians.
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One of his plans is to increase the number of users and ensure greater freedom of speech. In addition to suppressing spam accounts, Musk called for several other changes, including the return of some banned accounts, including the account of former US President Donald Trump.
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Musk has become relatively poor in recent weeks. According to Bloomberg, its stake in Tesla fell by more than $ 32 billion and the company’s shares lost 12 percent.
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In order to finance the purchase of Twitter, Musk has agreed with a consortium of nine banks to provide him with loans of $ 13 billion and $ 12.5 billion, for which he uses part of Tesla’s shares as collateral. Therefore, with their significant decline, it could have a problem.
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