Elon Musk puts Twitter deal on hold over 5% spam accounts

Elon Musk has announced that he is putting on hold the deal to acquire Twitter barely weeks after the two parties agreed on a $44 billion deal. The billionaire announced this development on Friday through his Twitter handle.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk tweeted on Friday.

The suspension of the deal may not be unconnected to Twitter’s disclosure on Monday while giving its first-quarter report, that fake or spam accounts represented close to  5% of Twitter’s monetisable daily active users during the first quarter.

The disclosure came days after Elon Musk tweeted that one of his priorities, as soon as the deal was concluded would be to remove “spam bots” from the platform.

Twitter had stated while filing its report that it faced several risks until the deal with Musk is closed. This is because the company is apprehensive whether advertisers would continue to spend on Twitter and “potential uncertainty regarding our future plans and strategy.”

The social media company had 229 million users who were served advertising in the first quarter.

The news sent Twitter shares down more than 20% in premarket trading.

MARKETING EDGE will keep you updated as the story unfolds


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