Elon Musk ‘Still Committed’ To $44 Billion Twitter Acquisition Despite Putting Deal ‘On Hold’

Updated 5 hours ago

ELON MUSK SAID this morning that his deal to take control of Twitter and take the publicly traded company private is “temporarily on hold.”

Tesla’s CEO tweeted the news this morning along with a link to a Reuters report from earlier this month.

According to the report, Twitter estimated in a regulatory filing on May 2 “that fake or spam accounts represented less than 5% of its monetizable daily active users during the first quarter” of 2022.

Reuters reported at the time that Twitter said in the filing that it faced several risks until the Musk deal was closed, such as whether advertisers would continue to spend on Twitter and “potential uncertainty regarding our future plans and strategy.”

Musk, who has vowed to tackle spam bots on Twitter, posted the article, along with his own comment.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts represent less than 5% of users,” he tweeted along with the link.

Hours later, however, he tweeted: “Still committed to acquisition.”

Twitter’s share price has fallen about 11% since Musk’s tweet.

Meanwhile, Tesla’s share price jumped this morning in premarket trading after falling about 28% since details of Musk’s plans to buy Twitter were first made public.

Musk’s announcement follows days of market volatility after the US Federal Reserve’s decision to raise interest rates for the second time in as many months last week.

Risk assets like cryptocurrencies have taken a beating in the days since the announcement.

The price of Bitcoin, the most popular and well-known crypto asset, fell more than 50% at one point on Wednesday, but has since recovered and is now down 9% for the week and close to 39% over the past year. Tesla invested $1.5 billion in Bitcoin in February 2021, the value of which had fallen to $300 million at one point this week.

Separately, Twitter confirmed Thursday that it has halted company-wide hiring amid a major top-executive shakeup.

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Kayvon Beykpour, a general manager who heads research, design and engineering at Twitter, is leaving along with the social media giant’s chief product officer, Bruce Falck, a Twitter spokesman told AFP.

However, Beykpour said he was kicked out of the San Francisco-based tech company.

“The truth is that it is not how or when I imagined leaving Twitter, and it was not my decision,” Beykpour, who is on paternity leave, said in a tweet.

Twitter boss Parag Agrawal “asked me to leave after letting me know he wants to take the team in a different direction,” he added.

Twitter also confirmed that, starting this week, it will pause all hiring except for business-critical roles.

— Additional report by © AFP 2022

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