New Delhi, May 13: Elon Musk on Friday said that his planned takeover of Twitter for a hefty price of $44 billion has been temporarily put on hold amid concerns about uncertainties in the number of fake or spam accounts on the site.
The billionaire wrote in a tweet, “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5pc of users.”
Following the tweet of Tesla’s CEO, the shares of the microblogging site crashed 25pc in pre-market trading.
There’s been growing worries among investors that the Tesla founder’s bid for Twitter won’t go through due to the significant financial and political exposure linked to the deal.
At the same time, the world’s richest man is facing legal challenges over allegations he was too slow to disclose his stake in the company, while he has also found himself at the centre of a political tussle over free speech and new laws over harmful online material.
Notably, Musk has previously said that removing “spam bots” would be one of his priorities at Twitter.
The company also warned of risks associated with the takeover, including whether advertisers would continue to spend money.