Elon Musk said his $44 billion deal to buy Twitter is temporarily on hold after he queried the number of fake or spam accounts on the platform.
He said he was waiting for information “supporting [the] calculation that spam/fake accounts do indeed represent less than 5% of users”.
Twitter reported nearly two weeks ago that fake accounts accounted for less than 5% of its daily active users during the first three months of this year.
Musk is now examining that figure.
Following the announcement,
Twitter shares fell 25% in pre-market trading.
(Great call by @Hindenburg)
The odds are that the deal might not go through – there is so much red tape surrounding the execution of the privatization and with such a complex financial structure one minor hurdle can jeopardize the entire deal.
Under the terms of the deal, if either Twitter or Mr. Musk walk away they must pay the other side a termination fee of $1 billion.
Two Twitter executives leaving ahead of takeover in one of the biggest shake-ups.
Kayvon Beykpour, who led Twitter’s consumer division, and Bruce Falck, who oversaw revenue, both tweeted they were leaving Twitter.
Mr. Beykpour said that he is currently on paternity leave and was disappointed after being asked to leave by Mr. Parag, who “wants to take the team in a different direction“.
Jay Sullivan, who was leading the consumer unit during Mr. Beykpour’s leave, will become permanent head of the division. He will also oversee the revenue team until a new leader is appointed.
(Moral of that story? Keep your eyes on the ball ⚽️ 👀 )