Elon Musk puts Twitter deal on hold, Tesla shares jump 6% in the PM

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter

Elon Musk tweeted on Friday morning that the $44 billion Twitter deal is “temporarily on hold” due to pending details regarding the percentage of spam/ fake accounts. According to Reuters, Twitter estimated in a filing earlier today that false or spam accounts represented fewer than 5% of its monetizable daily active users during the first quarter. The social media company had 229 million users who were served advertising in the first quarter. 

Twitter acquisition by Tesla’s CEO was seen since the beginning as risky by Tesla shareholders, specially due to Musk’s $6.25 billion loan backed with Tesla stock. Share price of the largest EV manufacturer quickly reacted topping $782 in the Pre-Market, up over 7% from Thursday’s closing price of $728.

On the same day Musk announced the intention to buy Twitter, Tesla’s CEO was interviewed for TED Vancouver and said: “I’m not sure that I will actually be able to acquire it. And I should also say, the intent is to retain as many shareholders as is allowed by the law. I could technically afford it”.

As Tesla’s CEO said various times during the last weeks, removing the fake accounts was one of his priorities when acquiring Twitter.

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter