The Washington Post reported that the deal to buy the social media company is in serious jeopardy.
According to the Post, Musk's team has pulled back from certain discussions about the purchase and that it is not possible to verify the number of accounts on the platform.
As of 5.15 a.m., the company's shares were down 4%. Before the market opens. The trading hours in the US are normal.
Musk's deal to buy and take it private at a price of $54.20 a share, which was announced in April, has been thrown into doubt due to Musk questioning the data on bot users.
Musk put the deal "temporarily on hold" in May, saying he wanted more details to verify that less than 5% of people use fake accounts.
The Washington Post reported on Friday that Musk's team is concerned about the amount of data that is provided by the social networking site. According to the Post, Musk's team don't think they have enough information to judge the company's business prospects.
It will be difficult for Musk to go back on his word if there is a big problem.
A person from the company said they have no further comment beyond the June statement. The agreement is in the best interests of all shareholders. The transaction will be closed and the merger agreement will be enforced.
According to some analysts, Musk could be looking for a way out of the deal given the recent slide in tech stocks. The price of the deal has caused the market cap of the company to fall to $30 billion.
Outside of normal office hours, Musk did not reply to a request for comment.
All Rights Reserved © 2024
