Billionaire Elon Musk said Friday (13) that the Twitter purchase deal is “temporarily on hold.”
According to Musk, details regarding the fake accounts are still being discussed.
“Twitter’s (purchase) deal is temporarily on hold due to pending details confirming that fake accounts actually account for less than 5% of users,” he said in a post on the social network.
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After the message, Twitter shares fell about 20% in pre-market trading on the US stock market, according to AFP.
In late April, the world’s richest man announced a deal to buy the social network for $44 billion.
The platform was created in 2006, and has more than 217 million monthly users.
The deal was also the subject of disputes from shareholders. On the sixth day, Musk and the social network were sued by the Orlando Police Retirement Fund, a Florida pension fund, which seeks to prevent the Mongols from completing the purchase of the social media company before 2025.
Twitter X-ray – Photo: Arte/g1
Learn more about Elon Musk In the video below:
Elon Musk, the billionaire who bought Twitter, is famous for being moody
from where Elon Musk Will take 44 billion US dollars to buy Twitter?
Much of Elon Musk’s fortune is linked to his shares in Tesla – Photo: AP Photo/Matt Rourke
Billionaire Elon Musk’s purchase of Twitter has raised several questions about the future of the social network and the deal itself. Among them, where will the funds that will be used to complete the transaction of 44 billion US dollars (about 215 billion Brazilian reals) come from.
In a document filed with the US Securities and Exchange Commission (SEC) on April 21, Musk said he had commitments with Morgan Stanley to obtain two loans, one for $13 billion and the other for $12.5 billion, which is $25.5 billion. one billion.
The amount of that credit was confirmed in another Securities and Exchange Commission filing released on Monday, bolstering the settlement.
The $1 billion deal, which Twitter’s board of directors unanimously approved Monday (26), still needs approval from the company’s shareholders and regulators, but is expected to be completed later this year.
In the same register, the billionaire is obligated to allocate up to 21 billion US dollars of his personal wealth to complete the process, but does not clarify the source of this money.
Musk, who is the world’s richest man, with a fortune close to $265 billion, has much of his money tied up in Tesla stock — about 17% of the company, valued at more than $1 trillion, according to FactSet — in addition to his own space company SpaceX.
Musk could sell Tesla shares to raise money — which could hurt the company’s stock price. On the other hand, Forbes reports that the billionaire has already used more than half of his stake in Tesla as collateral for other loans.
Another way Musk is pushing the deal is to seek investors to join his proposal, and buy a stake in Twitter’s future.
In two moments, the world’s richest man hinted that he could work with existing Twitter investors. In a letter to the company’s board of directors, he said he could “explore options that would allow existing shareholders to invest all or part of their profits in the transaction.”
In an interview a few weeks ago, Musk said he would like to keep “as many shareholders as possible” for a private company. Under US law, after purchase, Twitter can have up to 1,999 members.
In that case, some of the company’s major shareholders will join Musk in the bid. In the document, the billionaire informs that these agreements must be made separately – and does not describe the terms of each negotiation.
Jack Dorsey could be one of those partners. The Twitter co-founder owns about $980 million in stock on the social network, considering the $54.20 value provided by Musk. Last Monday (25), Dorsey took an upbeat tone to talk about the company’s sale.
The two CEOs often talk about cryptocurrencies on Twitter and exchange public praise on various situations. In January 2020, Dorsey invited Musk to an event with contributors to the social network. At the time, the billionaire gave advice on how to improve the platform.
Elon Musk and Twitter: an old and controversial relationship
Trump’s possible comeback
Donald Trump and Elon Musk – Photo: clone
Billionaire Elon Musk said on the 10th of this month that he will rescind former US President Donald Trump’s comment on Twitter. For Musk, who offered $44 million to buy the social network, it was wrong for the platform to behave in this way toward Trump.
“I would like to cancel the permanent suspension [de Trump]“The trade mogul explained that the deal with Twitter has not yet been completed, and therefore, it is not certain that the ban will be lifted,” Musk said at the Financial Times conference.
Musk said he agreed with Twitter co-founder Jack Dorsey that there should not be a permanent ban on the social network. “It wasn’t right to ban Donald Trump,” Musk continued. “I think it was wrong.”
The former US president was suspended from Twitter and other social media after his supporters stormed the US Capitol in January 2021 to question Joe Biden’s victory in the presidential election. Twitter indicated that Trump was suspended due to the risk of inciting violence.
In his statements about the United States, Musk said that blocking Trump’s profile on Twitter ” alienated a large part of the country.” He continued, “He’s not killing Trump’s voice. He’s amplifying it among the right. That’s why it’s morally wrong and totally stupid.”
Alleged left bias
Musk also mentioned that it is necessary to reduce the alleged left bias in Twitter moderation.
“They come from a very left-wing environment,” the billionaire said of the San Francisco-based employees. But they have failed to build trust in the rest of the United States and perhaps other parts of the world.”
When the Twitter purchase was announced, Musk said he intended to expand the space for free speech on the social network. He also stated that he intends to open the algorithm to third-party reviews and certify all real users to stop bot and spam accounts.
Trump says he won’t be back on Twitter
Former US President Donald Trump has said he will not be returning to Twitter. Photo: Chandan Khanna/AFP
Trump has already announced that he will not return to the social network even if he is re-accounted. After Twitter announced the acceptance of the offer, the former US president said that he would remain on the platform he created after being suspended from Twitter.
“I’m not going to Twitter, I’m going to be on the Truth Social,” Trump said. “I hope Elon buys Twitter because he’s going to make improvements and he’s a good guy, but I’m going to stick with the truth,” Trump said.