Elon Musk has decided to reconsider the deal, after his $44 billion Twitter takeover bid was approved by Twitter's board of directors. Musk said in a statement on Twitter that the Twitter deal was put on hold until details were disclosed showing that spam and fake accounts do indeed represent less than 5 percent of the total number of users.
Twitter reported earlier this week that less than 5 percent of spam or fake accounts found on the social media platform. However, SpaceX and Tesla CEO Elon Musk showed that he intends to conduct a detailed investigation with a skeptical approach to whether the reported figures reflect the truth.
Elon Musk's twitter share included the following statements;
Elon Musk, who is extremely sensitive about fake accounts, said that cleaning the spambots from the platform would be among his priorities while listing the innovations he would bring for Twitter after the announcement of the $44 billion deal.
Now, it is eagerly awaited how Twitter will react to Elon Musk's decision. In previous statements, management had said it was with various risks, such as whether advertisers would continue until the deal was completed and their future plans.
According to the statement, Twitter shares fell below $35 with a decrease of nearly 25 percent in futures before the US market opening.
Before Musk made an offer to buy Twitter outright, he bought a 9.2 percent stake in early April; however, it did not disclose this acquisition in a timely manner within the US Securities and Exchange Commission (SEC) mandated regulations. The Federal Trade Commission (FTC) reported that it is investigating the timing of Musk's disclosure. It was later said that the FTC was separately reviewing the purchase.
Wedbush Securities analyst Dan Ives stated that the probability of the deal with Musk being completed is 90 percent or more, but there are 3 things that are putting pressure on the price.
"The first is that Twitter stock will only be valued at $20 if it remains a publicly traded company. Second, the actions of the regulators cast a shadow over the deal. Finally, Musk's financing of the acquisition, partly using Tesla shares, creates greater risk and uncertainty."