For some weird reason billionaires can get a sense of buyer's remorse. Musk said on Friday that he was putting the deal on hold while he looked into fake accounts.
The stock market took a hit when Musk held off on the social media platform acquisition. At the market opening, the shares plummeted by more than 10% to $40.50, trading below the acquisition price of $54.20 per share.
The company claimed in its SEC filing on May 2 that less than 5% of accounts were fake and that it had taken action against them. Musk's decision to pause the acquisition due to an active investigation implies that the figures may be higher than the company claimed.
Still committed to acquisition
— Elon Musk (@elonmusk) May 13, 2022
Two hours after his initial message, Musk said he was still committed to acquiring the micro-messaging service. Sources familiar with the matter said that the company found his comment to be in violation of the terms of the contract, as well as derogatory in assuming that the company misled him about the number of fake accounts on the platform. They said that the company won't take any action, since Musk later said that he wanted to own Twitter.
Thousands of people have stopped using their accounts because they don't want to use the app under an owner they dislike. Even if the acquisition goes through, Musk will be the CEO for a short time.
Recommended video
All Rights Reserved © 2024
