The Twitter deal is temporarily suspended over the amount of spam and fake accounts on the platform, Elon Musk revealed on Friday. The latest development comes just over a fortnight after Musk announced the acquisition of the microblogging platform for $44 billion (roughly Rs. 3,40,800 crore) last month. Musk said he would make Twitter’s algorithms open source and improve its policies to better support free speech on the platform – following its acquisition. Shortly after Musk’s decision became official, reports suggested the billionaire could change the price of the deal.
Here are the 10 important things you need to know about the Elon Musk-Twitter deal that’s now on hold:
- “The Twitter agreement is temporarily suspended pending details supporting the calculation that spam/fake accounts indeed represent less than 5% of users,” Musk tweeted on Friday.
- Twitter has yet to publicly comment on the matter. Elon Musk also did not provide additional details as to whether he is particularly concerned about the given percentage of spam and fake users provided by Twitter.
- Earlier this month, Twitter said in a filing that fake accounts and spam accounted for less than 5% of the total number of users on its platform.
- Elon Musk confirmed he bought Twitter for the $44 billion deal in April. Upon completion of the transaction, the San Francisco, Calif.-based company will become a private company.
- Under the terms of the deal, Twitter shareholders were to receive $54.20 in cash for each share they hold upon closing of the proposed transaction, the company said in its public statement announcing the deal last month. .
- Musk has reportedly secured more than $7 billion (about Rs 54,200 crore) in funding from a group of investors including Oracle co-founder Larry Ellison to fund his $44 billion deal.
- Investors recently suggested Musk might not buy Twitter at the agreed price of $44 billion, as the company’s shares plunged to their lowest level since the deal went public on April 25.
- Prior to the acquisition deal, Musk revealed he had a 9.2% stake in Twitter in a regulatory filing.
- Musk recently said he would rescind former US President Donald Trump’s Twitter ban when he completes the acquisition. He called the decision “morally wrong and downright stupid” during a speech at the Financial Times conference on the future of the car. Musk also received support from US Republicans – the political party group that belongs to Trump – for the acquisition decision, although Democrats were not happy with the deal.
- Elon Musk’s takeover of Twitter has also recently been the subject of antitrust scrutiny by the US Federal Trade Commission (FTC). The Open Markets Institute recently called for the deal to be halted because it believed it could give the world’s richest man “direct control over one of the world’s most important communications platforms. and public debates.
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