Elon Musk Suspends Acquisition of Twitter, as the Company Value Drops by N3.73trn in 2 Weeks

Elon Musk Suspends Acquisition of Twitter, as the Company Value Drops by N3.73trn in 2 Weeks

  • Elon Musk has announced a plan not to go ahead with the payment for the acquisition of Twitter and demands clarity
  • His decision is coming hours after the value of Twitter shares dropped to $46, well below Elon Musk’s purchase price of $54.20
  • The massive drop in the value of Twitter's share has whipped out a whopping N3.73 trillion in two weeks

Elon Musk, the world's richest man, has postponed his Twitter transaction due to spam and bogus accounts on the microblogging site, just a month after the company's board agreed to sell it to him.

Musk took to his Twitter account to disclose that the deal would be temporarily put on hold until there is a probe into the percentage held by fake accounts, which the billionaire has threatened to eradicate.

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Legit.ng previously reported that Musk agreed to purchase 100 percent of Twitter for about $43 billion after gathering funds from banks and other investors to fund the transaction.

Elon Musk, Twitter
Elon Musk seek more clarity Credit: basyt
Source: UGC

Commenting on Friday, Musk wrote:

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“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”

Why the deal was place on hold

Musk had earlier revealed that one of his many goals after the acquisition of Twitter was to eliminate spam accounts, also known as bot.

He had tweeted on April 21 saying:

“If our twitter bid succeeds, we will defeat the spam bots or die trying!”

Again on May 3, 2022 he retweeted:

"There is so much potential with Twitter to be the most trusted & broadly inclusive forum in the world!

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“That is why we must clear out bots, spam & scams. Is something actually public opinion or just someone operating 100k fake accounts? Right now, you can’t tell.”

Reuters reports that bot handles account for about 5% of Twitter’s 229 million users.

Twitter value drops

CNBC reports that since Elon Musk's pursuit of the ownership of Twitter, shares of the social media company are dropping.

According to Thursday data, the value of Twitter shares dropped to $45.08 well below the $54.20 that Musk agreed to pay on April 27.

The massive drop means a whopping $9 billion(N3.73trn) has been whipped off Twitter's market value.

Elon Musk challenges Putin to a single combat, Russia responds

Recall that Legit.ng reported that the world’s richest man, Elon Musk has challenged the Russian President, Vladimir Putin to single combat, as a way to stop the Russian invasion of Ukraine.

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In his tweet on Monday, Musk said he is challenging the Russian strongman to a combat and whoever wins takes over Ukraine.

The stakes are Ukraine, Musk said in the tweet, as Russia intensifies its unprovoked aggression in the country.

Source: Legit.ng

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