The Twitter (TWTR) transaction is “temporarily on hold,” according to Musk

he Twitter (TWTR) transaction

The Twitter (TWTR) transaction who insists he is “still committed” to it despite recent challenges stemming from concerns over bogus accounts.

Elon Musk’s (NASDAQ: TSLA) Twitter (NYSE: TWTR) story rolls on. Tesla, Inc. (TSLA) CEO Elon Musk sent Twitter shares plunging on Friday, May 13, when he announced that his $44 billion acquisition of the social media behemoth was “temporarily on pause.”

Until it can be verified that spam or false accounts on Twitter make up less than 5% of users, Musk said the acquisition would be put on hold.

The Twitter (TWTR) transaction

After Musk’s statement, Twitter’s stock fell by nearly 20% in pre-market trade.

Shares of Twitter rose again when Musk published a follow-up tweet later in the day stating he was “still committed” to the purchase.


On Friday morning, May 13, Elon Musk tweeted that his attempt to acquire Twitter was “temporarily on pause” until more information was available concerning Twitter’s spam and phony accounts.

According to a recent Reuters article, Twitter estimates that less than 5% of its monetizable active accounts in Q1 were spam or false.

Following Musk’s statement, Twitter’s stock dropped by approximately 20% in pre-market trade.

Shares of Twitter have recovered marginally but are still down considerably on the day after Musk’s second tweet in which he said he is “still committed” to the transaction.

Examining the Scandalous State of Technology:

Musk, the world’s wealthiest man, decided to purchase Twitter on April 25 without due diligence.

According to a report from Reuters published in early May, Twitter estimates that less than 5 percent of its 229 million monetizable daily active users for Q1 were false or spam accounts.

In his tweet demanding a delay, Musk referenced the Reuters article.

The stock price of Twitter, along with those of many other major technology businesses and even Musk’s own Tesla, has dropped significantly during the last several weeks. Shares of Tesla have dropped by about 30 percent over the previous month, which may be connect to rumors that CEO Elon Musk wants to use Tesla as collateral to borrow money to buy Twitter.

At its current price of $40.60, Twitter is selling for far less than Musk’s April 25 offer of $54.20 per share. The social media behemoth’s stock price has dropped roughly 25% since April 25.

Repercussions for Financial Backers

If the gap between Musk’s bid price and Twitter’s current price continues to expand, investors may wonder if Musk will go through with the acquisition. His declaration of a pause in negotiations might be a ploy to get Twitter’s board to accept a lesser price or to renegotiate the terms of the original arrangement.

The wider downturn in the IT sector and impending fears about inflation amplify the effects of the highly publicized and prolonged discussions between Twitter and Musk.

To what extent has Musk progressed with his Twitter agreement?

Musk tweeted early on Friday, May 13, that he was temporarily postponing his purchase of Twitter until he could learn more about the frequency with which spam and fraudulent accounts are create on the social media network.

What are the Odds of Musk’s Twitter Purchase Going Through?

The Twitter (TWTR) transaction

Despite Musk’s assurances that he would proceed with an acquisition of Twitter, the stock price plunged after he made the news. This may indicate that investors are wary about the proposed transaction.

Why Do We Have a Problem with Fake Twitter Accounts?

Musk’s tweet referred to an article from early May that said less than 5% of Twitter’s monetizable active accounts are bogus or spam. This fraction is significant because it may affect how much money Twitter makes from advertisements.

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