Musk announces ‘hold on hold’ to buy $44 billion of Twitter

ELon Musk tweeted that his $44 billion takeover of Twitter was “temporarily put on hold” as it awaited data on the percentage of fake accounts, driving the social media mogul recklessly.

After Musk tweeted, Twitter plunged 20% in pre-market trading after trading halted until there were details on the company’s allegation that fake accounts contributed less than 5% of users.

Twitter said in a previous document that “during the first quarter of 2022, the average number of fake or spam accounts accounted for less than 5% of monthly daily active users during that quarter.”

When Musk announced a deal to acquire Twitter last month, Musk said he wanted to defeat spam bots, authenticate everyone, and open-source the algorithm. Musk also said he wants to make the platform a fortress of freedom of speech by removing the balustrades of content moderation.

Bots are currently allowed on Twitter, but company policy requires these accounts to be marked as automated. The platform has also launched a label for “good” bots, such as @tinycarebot, an account that tweets self-management notifications. However, spam bots are not allowed and the company has a policy to combat spam bots.

In recent days, doubts have grown over whether Musk will be able to take over Twitter.

The spread on the trade, which indicates how much Wall Street believes the acquisition will be completed, increased on Thursday to $9.11 from $8.11 in the previous session. That’s the largest since the billionaire began bidding last month to buy Twitter for $54.20, double when it announced last week’s funding commitment of around $7.1 billion.

Musk is also discussing with investors to raise sufficient capital and preferred financing for the proposed Twitter takeover to eliminate the need for margin loans associated with Tesla stock, people familiar with the matter said.

He recently disclosed a $7.1 billion stake in investors including Larry Ellison, Sequoia Capital, Qatar Holding and Saudi Prince Alwaleed bin Talal, the latter of which included his Twitter stock in the deal.

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