Elon Musk says Twitter deal is pending over pending details about fake accounts

Elon Musk, during an event at SpaceX headquarters in Hawthorne, California, US, on Thursday, October 10, 2019.

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Elon Musk announced on Friday that his Twitter The deal is on hold until he receives more information about how many fake accounts there are on the social media platform.

Twitter stock fell 18% after the announcement. A Twitter spokesperson did not immediately respond to CNBC’s request for comment.

CEO of Tesla Musk announced last month He intends to buy Twitter for $44 billion, and has previously tweeted that one of his main priorities will be to remove “spam bots” from the platform.

Even before Friday’s announcement, the company’s market capitalization fell to $9 billion below the bid price due to concerns about the deal.

Twitter estimated in a filing earlier this month that less than 5% of monetized daily active users during the first quarter were bots or spam accounts.

Musk, who is the world’s richest person on paper, now wants the company to confirm this before he proceeds with the deal, which is funded in part by Oracle founder Larry Ellison and venture capital firm Andreessen Horowitz.

The San Francisco-based social media company said in the filing that it had 229 million users in the first quarter who received ads.

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