Elon Musk turns his car to pause the Twitter acquisition

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2022-05-14 02:35:21

On May 13, billionaire Elon Musk announced that he would suspend the $ 44 billion acquisition of Twitter. The Tesla boss is waiting to receive the exact number of fake accounts on the platform.

The announcement tweet of billionaire Elon Musk

This news made investors restless, Twitter’s share price also fell to the lowest level since early April.

On his personal Twitter page with more than 92 million followers, billionaire Elon Musk said:

“Twitter Agreement temporarily suspended pending detailed processing in favor of the calculation that spam/fake accounts actually represent less than 5% of total users.”

According to an accurate report from Twitter, the number of fake accounts is less than 5% of the users of this social network. This contrasts with Elon Musk’s previous statement that one of his priorities is to get rid of spambots (programs created to send spam) from the platform.

On April 25, Twitter announced it would sell itself to Elon Musk for $54.2 per share, equivalent to $44 billion. At the same time, the South African-born billionaire will have to pay $ 1 billion if unilaterally terminating the agreement.

Elon Musk’s decision to pause the buyback caused Twitter Inc’s share price to immediately drop 17.7% to $37.1. This is the lowest level since Musk made an offer to buy this social network. Twitter has yet to respond to this move.

Twitter’s share price has fallen seriously in recent days

Many people question whether this world’s richest billionaire really wants to renegotiate this deal. To the bewilderment of investors, Elon Musk had to post another notice that he still intends to buy Twitter. Musk’s correction made the DOGE coin’s price rise slightly after a sharp decline.

An interesting thing is that after the announcement of billionaire Musk, while the price of Twitter shares fell, the share price of electric car company Tesla increased.

Before that, to buy Twitter, CEOs of SpaceX and Tesla had to borrow money from different parties. According to published documents, Musk has raised $7.14 billion from a variety of large organizations. Surprisingly, this billionaire received $ 500 million from Binance – the world’s largest cryptocurrency exchange.

See also: Details of the Tesla boss’s Twitter acquisition

Initially, Musk’s goal was to make Twitter a private company with full control over matters related to the platform. Elon Musk shared that he will promote freedom of expression on Twitter and make it a public company after overcoming all the shortcomings.

One thing Musk doesn’t like about Twitter is its censorship policy. Some of his previous posts have been “flagged” by this platform. Billionaire Musk suggested Twitter change its algorithm to prioritize posts that are public.

On May 10, Elon Musk announced that he would lift Twitter’s ban on former US President Donald Trump once the acquisition is completed. Specifically, at the FT Live’s Future of the Car conference, Musk said:

“The permanent ban should only be for bot accounts, or scam or spam accounts. I don’t think it’s right to ban Donald Trump, I will reverse this ban permanently.”

The Crypto community used to expect that when the world’s number one billionaire takes over Twitter, it will make the platform have more favorable policies for cryptocurrencies, not stop at supporting the integration of BTC, ETH wallet addresses or placing orders. NFT representative photo. Recently, it was rumored that Elon Musk intends to accept payment for some social network services in Dogecoin (DOGE).

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