The deal to acquire Twitter, announced last month, has been “temporarily put on hold,” Tesla CEO Elon Musk said. The sale has been halted till it is ascertained whether spam or fake accounts represent less than five percent of the microblogging site’s total user base. Musk had signed definite agreements with Twitter for the latter’s takeover for $44 billion. Twitter temporarily deals on hold pending details supporting the calculation that spam/fake accounts represent less than 5% of users (sic). Twitter had informed the stock exchanges on May 2 that the affected or spam accounts on its platform represent less than 5 percent of its monetizable daily active users during the first quarter.
Twitter had 229 million users who were served advertising in the January-March quarter.
The social media company had 229 million users who were served advertising in the January-March quarter. The disclosure came days after Musk shortly after sealing the deal to acquire Twitter. Said that one of his priorities would be to remove “spambots” from the platform. In the exchange filing, Twitter had also noted that it faced several risks until the deal with Musk was closed. Such as whether advertisers would continue to spend on the platform and “potential uncertainty regarding our plans and strategy. Musk’s deal to buy Twitter, even if it sails through, is expected to take months to fruition as the billionaire needs to secure the finances.
Elon Musk has raised $13 billion in loans secured against Twitter and a $12.5 billion margin loan tied to his own Tesla Inc stock. Over the past couple of weeks, he has been speaking about reducing the operational costs of Twitter. He has tweeted about eliminating the salaries of the company’s board of directors, which he said could result in about $3 million in savings.