Twitter Shares Slump After Musk Says Takeover on Hold

Twitter Inc. shares tumbled after Elon Musk tweeted that his $44 billion takeover of Twitter Inc. is “temporarily on hold” over a filing stating fake accounts contribute less than 5% of its users.

Twitter slumped 20% pre-market after Musk’s tweet, and Tesla shares rose roughly 5%.

Twitter said in a previous filing “that the average of false or spam accounts during the first quarter of 2022 represented fewer than 5% of our monthly daily active users during the quarter.”

Musk said in a statement announcing his deal to buy Twitter last month that he wants to defeat spam bots, authenticate all humans and make its algorithms open source.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users https ://t.co/Y2t0QMuuyn” — Elon Musk (@elonmusk) May 13, 2022. –Bloomberg