Usually, Elon Musk drops bombshell announcements at the beginning of the week; this time, he chose to do it at the end of the week too.
Friday, the world was reacting to the news that Musk had put his $44 billion takeover of Twitter on hold, so he could have extra time to analyze how many of the accounts were fake. Musk said he is “still committed” to taking the deal to the finish line and completing the sale, but in the meantime, the Twitter stock price took a might plunge, down 25% in pre-market trading Friday.
As for the fake and spam accounts on Twitter, Musk wants to make sure they represent few than 5% of the total of 229 million users. It’s no secret Musk wants to get rid of “spambots” if he can.
Here’s what Musk tweeted about his surprising move.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”
Clearly, the thought of Musk not owning Twitter now that people are excited about his deal going through caused a bit of minor panic, and Musk attempted to alleviate fears by tweeting he is “still committed to acquisition.”
If Musk were to back out of the deal, he would have to pay a $1 billion termination fee, so he’s financially motivated to keep it on track.
At Twitter headquarters, it appears they are planning on Musk taking over. The CEO sent out a company-wide email saying the company would be scaling back on spending and hiring, and they have let go of several top executives.