Stock in Twitter has fallen as investors fear that Tesla CEO Elon Musk may abandon the company’s $44 billion acquisition completely. A cheaper price for the acquisition of Twitter Inc. by Elon Musk is not “out of the question,” he said in an interview about the Twitter deal.
Shares of Twitter momentarily recouped some of their losses in the afternoon. As a result of this, the stock price has fallen by more than a quarter of a percent. Since Musk questioned Twitter’s publicly provided data on the percentage of spam and fraudulent accounts on its social media service last week, this worry has risen. Musk is not alone.
What Elon Musk Says About Twitter Deal?
At a Miami tech conference on Monday, Tesla CEO Elon Musk said that at least 20% of all Twitter Inc. accounts are bogus. In a live streaming video of his statements, he wondered hypothetically whether the number of Twitter bots could be as high as 90%, according to the Twitter user who tweeted the video. Attempts to reach Twitter for comment were met with an unanswered silence.
A week ago Musk, the CEO of Tesla and SpaceX, declared that his offer to acquire Twitter was “temporarily on hold” pending information regarding the number of spam and bogus accounts on the platform. During the weekend, he posted that Twitter’s legal team had called to complain that he had broken their non-disclosure agreement. Twitter has declined to provide any additional information.
The “All-In” podcast, managed by Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg, held a conference where Musk spoke. Journalists were not allowed to attend the $7,500-per-person event, organizers said. Video conferencing allowed him to participate in the Miami summit.
Twitter shares were first purchased by Musk in January, and he revealed his ownership of 9.2% of the firm on April 4. However, the deal has yet to be completed, and as a result, Twitter’s stock is currently trading at a significant discount to Musk’s $44 billion offer to buy the firm outright. Musk may be trying to get Twitter for a lesser price by emphasizing the issue of phony accounts, according to some.
At 2:53 p.m. in New York, Twitter shares plummeted 6.9% to $37.93. A widening gap between Musk’s $54.20-a-share offer value and Twitter’s share price wiped out all the gains earned since Elon Musk publicly announced his investment in Twitter.
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