Elon Musk revealed on Friday that the Twitter deal has been temporarily halted over the number of spam and fake accounts on the platform. The latest development comes just a fortnight after Musk announced the acquisition of the microblogging platform for $44 billion (about Rs 3,40,800 crore) last month. Musk claimed that he would make the Twitter algorithm open source and improve its policies to better support free speech on the platform – a result of his acquisition. Shortly after Musk’s move became official, reports suggested the billionaire may renegotiate the deal.
Here are 10 important points you should know about the Elon Musk-Twitter deal which is now on hold:
- “The Twitter deal temporarily pending details supports the calculation that spam/fake accounts actually represent less than five percent of users,” Musk tweeted on Friday.
- Twitter has not yet publicly commented on the matter. Elon Musk did not provide any further details about whether he is specifically concerned with the spam provided by Twitter and given the percentage of fake users.
- Earlier this month, Twitter said in a filing that fake and spam accounts accounted for less than five percent of the total users on its platform.
- Elon Musk confirmed buying Twitter in April for a $44 billion deal. Upon completion of the transaction, the San Francisco, California-based company will become a privately held company.
- According to the terms of the agreement, Twitter shareholders were determined to receive $54.20 in cash for each share upon closing of the proposed transaction, the company said in its public statement The deal was announced last month.
- Musk is said to have secured more than $7 billion (about Rs 54,200 crore) in funding from a group of investors including Oracle co-founder Larry Ellison for his $44 billion deal.
- Investors recently suggested that Musk might not buy Twitter for the agreed-upon price of $44 billion as the company’s shares fell to their lowest level since the deal went public on April 25.
- Prior to the acquisition deal, Musk disclosed holding a 9.2 percent stake in Twitter in a regulatory filing.
- Musk recently said he would reverse Twitter’s ban on former US President Donald Trump when the acquisition is complete. Speaking at the Financial Times Future of the Car conference, he called the decision “morally wrong and flat-out stupid”. Musk also received support from US Republicans – the group of political parties that are related to Trump – for the takeover move, although Democrats were not happy with the deal.
- Elon Musk’s purchase of Twitter also recently faced an antitrust review by the US Federal Trade Commission (FTC). The Open Markets Institute recently sought to halt the deal because it believed it would give the world’s richest man “direct control over one of the world’s most important platforms for public communication and debate”. could.
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