Elon Musk’s Twitter acquisition is on hold

Billionaire Elon Musk made Twitter wobble again on May 13, but this time it went down after announcing that the acquisition of this social network would be delayed because of the number of fake accounts on Twitter. Musk announced that the deal to acquire Twitter would be put on hold until he gets the exact number of fake accounts on the platform.

In an announcement on his Twitter account, which has more than 92 million followers, Elon Musk said the Twitter acquisition “will be on hold” but did not specify how long. The reason for the South African-born billionaire is because the number of fake accounts on Twitter is too much, accounting for about 5% of the total users.

Billionaire Elon Musk, the world’s richest man and the founder of electric car maker Tesla, has declared removing false and spam accounts one of the primary goals of his $44 billion acquisition of Twitter. He promised to make Twitter “better than ever” when the acquisition was revealed in late April, by authenticating users and eliminating all automated spam tools.

Twitter did not immediately respond to requests for comment from news agencies. According to market observers, the 5% figure has existed for a long time, so it is difficult to understand why billionaire Musk has just released it and used it as a reason to postpone the acquisition.

Some stock analysts believe this is an attempt by Elon Musk to lower the price of Twitter shares. However, it is also possible that the billionaire wants to withdraw from the agreement. Interestingly, Peter Schiff, one of the most vocal BTC critics, was quick to comment on Musk’s post, suggesting that the billionaire never actually intended to buy Twitter. Instead, Schiff believes he pushed the TWTR stocks higher to make a quick profit.

Earlier, on April 25, Twitter announced that it would sell itself to Elon Musk. Under the deal, Musk will buy back Twitter for $54.2 per share, or $44 billion. Musk will have to pay a $1 billion breakup fee if he stops his deal to buy Twitter.

However, it has been pretty quiet on that front since then, with only a few rumors suggesting that he could become a temporary CEO following the takeover and that numerous companies, including Binance, supported his deal.

Elon Musk has always been vocal about the number of frauds that occur on Twitter, as well as the concerning percentage of bogus profiles, even before he purchased a stake in the company. His name has previously been used in several impersonation scams, some of which included Bitcoin (BTC).

Musk is also a prominent supporter of cryptocurrencies over the past few years, often discussing popular memecoin Dogecoin (DOGE) and Bitcoin on social media. Dogecoin enjoyed by more than 7% following Musk’s statement on the Twitter deal. It has since recovered back to $0.0904 after trading at a low of $0.0898.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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