Elon Musk recently revealed that the Twitter transaction is currently on hold due to the quantity of spam and fraudulent accounts on the platform.
The news comes a little over a week after Musk said last month that he would buy the microblogging site for $44 billion.
As a result of his acquisition, Musk stated that he will make Twitter’s algorithms open-source and alter its regulations to better encourage free expression on the platform. Reports surfaced shortly after Musk’s announcement that the entrepreneur would re-price the acquisition.
Here are the recent developments you should know about Elon Musk’s Twitter transaction, which is now on hold:
Musk tweeted on Friday, “Twitter transaction temporarily on hold for details supporting computation that spam/fake accounts do indeed comprise less than 5% of users.”
Twitter has yet to respond publicly on the situation. Elon Musk has also not stated whether he is concerned about the number of spam and false users provided by Twitter.
In a filing earlier this month, Twitter stated that bogus and spam accounts for less than 5% of all users on the app.
In April, Elon Musk stated that he would buy Twitter for $44 billion. The San Francisco, California-based corporation will become a privately held company after the transaction is completed.
According to the provisions of the contract, Twitter investors will get $54.20 in cash for each share they own once the planned transaction is completed, the firm stated last month in a public statement.
Musk is claimed to have received about $7 billion in funding for his $44 billion acquisition from shareholders including Oracle Co-Founder Larry Ellison.
As the company’s value fell to its lowest point since the agreement became public on April 25, investors speculated that Musk might not buy Twitter for the agreed amount of $44 billion.
In a regulatory filing before the purchase, Musk revealed that he owned a 9.2 percent investment in Twitter.
Musk recently indicated that after the transaction is completed, he will lift Twitter’s restriction on former US President Donald Trump.
While addressing at a recent conference, he labeled the choice “morally wrong and flat-out foolish.” Musk also garnered backing from US Republicans — Trump’s political party — for the acquisition, however, Democrats were not thrilled.
The US Federal Trade Commission recently investigated Elon Musk’s acquisition of Twitter (FTC). The Open Markets Institute recently called for the deal to be halted, claiming that it would give the world’s wealthiest man “direct control over one of the world’s most influential forums for public communication and discussion.”
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