Elon Musk Puts Twitter Deal On Hold – But Why?

After making headlines for his $44 billion Twitter deal, Elon Musk now puts the deal on hold. The decision is made following the data regarding fake accounts. Here is everything you need to know!

The deal between the Twitter board of directors and Elon Musk was finalized on Monday (April 25th, 2022). The deal was confirmed by the Board Of Directors of Twitter as they said, Elon took over the platform for $54.20 per share. Revealing the deal, the company said, “upon completion of the transaction, Twitter will become a privately held company”.

The post further read, “Twitter, Inc. today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion”.

Well, this news kept flaunting across the internet for quite a long but we are witnessing a twist now. The Tesla and SpaceX founder has revealed that the Twitter takeover has been put on hold following the fake accounts on the Bird App.

Here is what we know about this deal so far. Stay tuned!

Elon Musk’s $44 Billion Twitter Deal On Hold

On May 13th, Elon Musk revealed that the $44 billion Twitter deal is put on hold, following the spam accounts that represent less than 5% of the overall users.

In his Tweet made on 13th May, Elon Musk wrote: “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users”.

The announcement from Elon Musk was made following a statement made by Twitter discussing the spam accounts.

Referring to these accounts Twitter said, “It applied significant judgment, so our estimation of false or spam accounts may not accurately represent the actual number of such accounts”.

The Tweet further read, “The actual number of false or spam accounts could be higher than we have estimated. We are continually seeking to improve our ability to estimate the total number of spam accounts.”

Elon had made the offer to buy Twitter on April 14th, 2022. He talked about acquiring the platform in the following words, “I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced”.

He further wrote in the filing: “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”

After considering the deal for a few days, Twitter agreed with Musk to purchase the social media site for $44 billion (around £34.5 billion).

Elon Musk Net Worth

Elon stands at number one, on the list of the world’s top billionaires. His net worth surged dramatically from 2020 to 2022. The leading billionaire acquired $30 billion to $270 billion in the past two years.

He became the richest person in the world overtaking Jeff Bezos in 2021. The Covid year proved to be the luckiest year for Elon as he topped the list of billionaires.

Elon is a graduate of the University of Pennsylvania. There he studied Physics and Economics after emigrating to Canada from South Africa at the age of 17.

Musk initially cofounded the platform X.com, currently known as PayPal, which he sold for $1.6 billion. Later he founded Tesla and SpaceX and entered the Forbes list of billionaires in 2012.

You may also want to read about Why Are People Quitting Twitter

The Last Words

Elon Musk puts the Twitter deal on hold for the calculations related to the fake accounts on the app. Hopefully, you have found all the details you were looking for.

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