Tesla CEO Elon Musk has reportedly placed his $44 billion deal to acquire Twitter on hold pending an investigation into bot accounts on the platform. The stock has plummeted more than 15 percent in pre-market following Musk’s announcement released on his Twitter account. In a follow up post, Musk added that he is “still committed to the acquisition.”
Tesla and SpaceX CEO Elon Musk has tweeted that his deal to purchase Twitter is currently “on hold” while an investigation into the number of bots and spam accounts on Twitter is completed. Twitter claimed in a recent filing that less than five percent of its daily active users were fake or spam accounts, now Musk appears to want to confirm this claim, which is lower than most estimates.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk said in a tweet.
Twitter shares immediately began to crater in premarket trading, falling by over 15 percent from $45.08 per share at previous close to $38.76 as of 7:30 EDT.
Musk added that he is “still committed to the acquisition.”
Breitbart News recently reported that the SEC has launched an investigation into Elon Musk’s late disclosure of his large stake in Twitter last month, a delay that allowed him to purchase more stock without alerting other Twitter shareholders to his ownership.