Twitter deal on hold, Elon Musk explains the reason

Publish Date: 13 May, 2022 |
 

Elon had talked about buying Twitter last month for $ 44 billion, but now the deal is stuck. Along with this, Musk said that this deal has been put on hold until it is known that spam or fake accounts are less than 5 percent of the total user base of the microblogging site. In his tweet, the Tesla owner has also shared an article from Reuters. 

As soon as the news of the Twitter deal being put on hold, the company's shares have seen a huge decline. The company's stock has fallen more than 11 percent in the pre-market. At the same time, Tesla shares climbed 5 percent. 

Elon Musk on twitter deal

Elon Musk said Friday that his $44 billion deal for Twitter Inc. has been temporarily halted, citing ongoing details on spam and fake accounts. "The Twitter deal temporarily supports the calculation on pending information that spam/fake accounts actually represent less than 5% of users," Musk said in a tweet.

Musk has been talking about removing the fake and bot accounts present on the platform since the time of the deal. He had said at the time of the deal that if this deal happens then his priority would be to remove the bot accounts from the platform.

Fine of 1 billion dollar if the deal is cancelled

According to a Securities Exchange (SEC) filing, if anyone from Twitter or Elon Musk backs out of this deal, they will have to pay a fine of $ 1 billion. If Twitter itself backs out of this deal, then the company's board will give $ 1 billion to Elon Musk. 

Similarly, if Elon Musk himself cancels the Twitter deal, then he will have to pay 1 billion dollars to Twitter. Let us tell you that for the last few days there have been reports in which it has been said that Musk now wants to withdraw from this deal.

 

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