Twitter saw a substantial drop in stock after Elon Musk made the announcement that he had halted his purchace of the social media company.
In a bombshell tweet, Elon explained that the unresolved deal is due to an investigation into Reuter’s claim that the number of bot accounts on the platform compose less than 5 percent of daily active users:
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
Also read: Elon Musk puts his R690 billion Twitter purchase on ice
Musk later reassured the public that he still intends to see the deal through with the simple tweet, “still committed to the acquisition”.
On 13 May, Business Insider reported that Twitter stock was down 18.19% to $37.01 as of 6.11am ET in premarket trading. The company closed at $45.08 the previous day, 12 May.
Shares in the social media company initially jumped in early April after Musk voiced his plans to buy the company. After negotiations between the two parties, they settled on a price of %54.20 a share; however, the stock “has consistently traded at a discount to the agreed price”, causing concerns that the deal might go awry.
As of 7.59pm ET on 13 May, Twitter stock showed a recovery at $40.81, according to CNBC.
Also read:
“He did it!” Mixed reactions as Elon Musk buys Twitter for R690 billion
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