Twitter, the world’s biggest micro-blogging platform, has been in the spotlight since the time Elon Musk, the world’s richest man, took a stake in it. Soon after, Musk sought to purchase the entire company for $44 billion. But now, the deal has been put on hold temporarily. The same has been confirmed by Elon Musk through a tweet made on Friday.
The reason cited by Musk for the hold was the pending investigation on the spam or false accounts present on the platform.
Twitter Worried About Several Risks Before Deal With Musk Closes
The deal between Twitter and Musk would not happen in a day, a week, or even months from now. It will take a long time for the legality of the deal, along with the other details surrounding it, to be addressed.
Thus, until the time this deal is closed, Twitter is worried about several risks it has already faced, one of which is whether the advertisers would continue to spend with the company. There’s a big uncertainty looming around the future of Twitter and this has made the company nervous for its business.
According to a Reuters report, Twitter revealed in a filing that it had less than 5% spam accounts on the platform during the first quarter. The data was revealed by Twitter after Elon Musk had tweeted that one of his top priorities after taking over the company would be to remove spam bots from the platform.
For now, the deal has been put on a temporary hold. But the stock of Twitter and Tesla both are suffering majorly. Tesla’s stock has gone down by 16% so far to $728 this week. Twitter’s stock was also 9.5% down at $45.08 at the closing bell on Thursday.
More is expected to be revealed by the company about future plans and the Elon Musk deal in the coming days.