Stock plummets on Wall Street as Elon Musk holds off on plans to takeover Twitter

Elon Musk, Tesla's boss and the world's richest man, announced that Twitter would be temporarily suspended until details are available on fake accounts.

Stock plummets on Wall Street as Elon Musk holds off on plans to takeover Twitter

Elon Musk, Tesla's boss and the world's richest man, announced that Twitter would be temporarily suspended until details are available on fake accounts. After this announcement, electronic trading took place before Wall Street opened. The stock of the group, which is listed on the New York Stock Exchange plunged 20%.

Elon Musk posted on Twitter that "The acquisition is temporarily suspended pending details about spam and fake accounts representing well under 5% users" Elon Musk, who has almost 93 million subscribers. In a second message, Musk assured that he was "still committed" in buying the social network. Twitter didn't respond immediately to AFP when it was contacted.

The board of directors of Twitter accepted an offer for 44 billion dollars (41 trillion euros) from a South African-born whimsical leader at the end of April. Elon Musk pledged to remove spam from Twitter, authenticate users, and increase transparency. He did not specify how he would implement this project.

At the beginning of May, the company stated that it had an average of 229 millions daily users who could be monetized, or exposed to advertising. On this occasion, she estimated that less than 5 percent of these users were fake or spam accounts.

Elon Musk stated that he wants to fight spam and that he also wanted the platform to be a bastion for freedom of expression. He said he was willing to restore former US President Donald Trump's account, which was temporarily suspended. After the January 2021 attack on Capitol Hill, his supporters. The market value of Twitter fell by several billion dollars since the offer of SpaceX and Tesla's boss.

Friday's stock trading was just above $36, which is well below the proposed $54.20 per share purchase price by Elon Musk. Dan Ives from Wedbush Securities stated that Elon Musk's tweet would "turn the Twitter takeover circus into Friday the 13th Horror Movie." Analyst comments:

Musk had nevertheless sought to be reassured on his financial ability. He planned to make a substantial personal contribution, and to apply for a loan on margin as well as a bank loan. In which he would use his Tesla shares as collateral. Musk claimed earlier this month that he had raised $7 billion from a variety of investors including Larry Ellison, Oracle co-founder, and Al-Walid bin Talal, a Saudi prince and businessman.

Dan Ives believes that Musk has underestimated the strength of Tesla shares. Their price has dropped sharply since the announcement. He could be seeking to protect Tesla.

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