Elon Musk puts Twitter takeover on hold pending more on fake accounts

Elon Musk puts Twitter takeover on hold pending more on fake accounts

Could Elon Musk’s acquisition of Twitter fail? An announcement from the eccentric billionaire has had the effect of a cold shower: he has put his plan to buy the social network on hold because he wants to know more about the number of fake accounts.

In his plan to acquire Twitter, Elon Musk had been very clear about one of the objectives of the operation: to clean up fake accounts and bots, which can amplify political messages or scams. According to the social network, which has 229 million users, less than 5% of them are fake accounts.

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But Elon Musk wants to get to the bottom of it. He therefore announced the suspension of the operation to buy Twitter while waiting to obtain precise figures. While claiming to always be engaged ” in the process. But for some analysts, this break could be a way out for the billionaire who would be tempted to stop the fees.

On April 25, Elon Musk announced his intention to buy Twitter shares at $54.20 each, valuing the company at $43 billion. The problem is that Twitter’s stock price has since collapsed, and this rebound has done nothing to help matters. Yesterday Friday, the title traded around $41 only, after a fall of more than 8%.

Not only is Elon Musk about to pay dearly for what many perceive as a fad, but it could also have very significant consequences for his own fortune. The financial structure of the acquisition of Twitter is based in part on the course of Tesla. The businessman intended to finance the purchase of the social network by selling shares of the automaker, the price of which plunged by nearly 30% in one month.

Added to this is the fact that Elon Musk pledged some of his Tesla securities to obtain a loan of 12.5 billion dollars to afford Twitter. A loan called into question if the Tesla share falls below the threshold of $837… which is the case (it is around $760). In short, fake accounts could well be a way to cancel the whole operation. The file is far from over, we must expect new unpredictable twists!

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