Elon Says Deal To Acquire Twitter On Hold

After running the hard mile to mobilize finances for his Twitter Inc. TWTR buy, Elon Musk said early Friday the deal is on hold.

What Happened: Musk tweeted that the deal is temporarily on hold, and the reason apparently is the discord over spam/fake accounts calculation.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” the Tesla Inc. TSLA CEO tweeted.

Musk’s announcement comes as a quote tweet of a Reuters article dated May 2 that said Twitter estimates false or spam accounts to make up less than 5% of its monetizable daily active users during the quarter.

Related Link: This Is What Elon Musk Plans To Accomplish With Twitter If He Takes The Platform Private

Why It’s Important: For the unversed, Musk in late April offered $54.20 per share to take Twitter private after building up a stake in the social media platform. Although holding off a bit by announcing a poison pill, Twitter finally agreed to be taken over by the Tesla chief.

Musk has since arranged a range of financing partners, including corporate executives, investment banks, and private-equity firms, to fund the acquisition.

The billionaire suggested his primary motive to take over Twitter is to make it a platform for free speech. He has also raised the issue of the proliferation of spam/fake accounts.

Twitter shares were down about 25% to $34.15 in premarket trading on Friday, according to Benzinga Pro data. Meanwhile, Tesla was advancing 6.20% to $771.46.

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