The Tesla and SpaceX boss’s team has reportedly halted negotiations with one of the investors supposed to contribute to the acquisition of Twitter for $44 billion.
Twitter’s action lost ground on the stock market on Thursday July 7 after the publication of an article by washington post that the takeover of the social network by Elon Musk would be seriously jeopardized, because of the concerns of the multi-billionaire about fake accounts.
The Tesla and SpaceX boss’s team has reportedly halted negotiations with one of the investors supposed to contribute to the acquisition of Twitter for $44 billion. “Now that Musk’s team has come to the conclusion that Twitter’s numbers on fake accounts were not verifiable, they should take drastic action, one of the sources said.” close to the file, details the American daily. On Wall Street, the title of the Californian company lost more than 4% during electronic trading after the close of trading, after a session up slightly (+1.52%).
Read alsoElon Musk casts doubt on his takeover of Twitter
Elon Musk has repeatedly questioned the data transmitted by Twitter on fake accounts and the means put in place to limit their proliferation. In early June, the group’s board of directors agreed to give Elon Musk access to the mountains of data needed to answer his questions on this subject, after the businessman threatened, in an official document, to withdraw his offer. So the world’s richest man and his team set out to analyze this raw data to determine if the percentage of fake accounts actually represents less than 5% of Twitter’s daily active users, as claimed by the network.
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“At this point, with an offer at $54.20 a share and a stock around $39, the market is clearly skeptical about the chances of the transaction taking place at the expected price”Wedbush’s Dan Ives noted in a note. “We believe the odds of the deal going ahead are currently around 60%, with a renegotiated price in the range of $42-$45 per share”he added.
If ever Elon Musk terminates his commitment to buy Twitter, he exposes himself to substantial legal proceedings. Both parties have pledged to pay severance pay of up to $1 billion in certain circumstances.