Elon Musk puts Twitter takeover on hold: Five things to learn more

Elon Musk announced on Friday that he was suspending his $44 billion purchase of Twitter. awaiting details on fake accounts“. However, the billionaire remains committed to the offer.

Shares of the company plunged 18% in premarket trading after the initial announcement, although it pared losses after renewing its pledge.

All information was made public via Twitter on Friday morning. How did we get here ? Let’s go through five points to learn more.

Elon Musk buys Twitter shares after criticizing the network

Elon Musk is an avid user of Twitter: he has been on the network since 2009 and already has more than 80 million followers. He announces almost every decision he makes on the microblogging platform. However, he has always been critical of its politics, considering it to affect freedom of expression.

In early April, it was reported that Musk had purchased 9.1% of the company’s stock (later corrected to 9.2%). Despite being offered to join the board, Musk declined to do so.

Elon Musk is offering $44 billion for his business and is studying the move.

On April 14, Musk said he wanted to buy Twitter, after criticizing the board for not backing several of his bids to change the network. The South African has put 44 billion dollars on the table.

Although the company initially declined his offer, it later said it would consider Musk’s proposal. Since then, Twitter partners have considered this initiative.

One of Mr. Musk’s top priorities, should he ever take over Twitter, is to “eliminate spambots of the platform. And this is where we take the next step…..

The suspension of the takeover: the motivations of Elon Musk

This Friday, May 13, Elon Musk reveals that he is suspending the purchase of Twitter. The reason, as he explains on the social network, is that he needs more information about the number of fake accounts present on the social media platform.

In a follow-up tweet, two hours after the first announcement, Musk said he was ” always engaged in the acquisition« .

Earlier this month, Twitter estimated that less than 5% of its monetizable daily active users in the first quarter were bots or spam accounts. Elon Musk is waiting for the company to confirm this point before proceeding with the operation.

According to Twitter, 229 million users received advertising in the first quarter.

The effects of Elon Musk’s decision on Twitter shares

After announcing that it was temporarily suspending its purchase of Twitter, the company’s stock plunged 18%. However, they cut their losses after Musk’s second tweet.

Today each share of the company is at $45.08, down 11.54% from the previous day.

What could happen to the business?

According to the agreement between Musk and Twitter, if Musk does not buy the company, he will have to pay a billion dollars. If Twitter does not definitively accept his offer, he will have to compensate the billionaire with a billion dollars.

However, it is unclear whether this clause will stand if the South African claims that the number of bots on the social network is false.

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