Tesla CEO Elon Musk said that the deal to take Twitter private is temporarily on hold, citing pending details supporting the calculation of spam and fake accounts.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk said in a tweet today.
The share price fell 20% in the pre-market trading. It closed 2% lower yesterday, -9.77% in the past five days. The share price has dropped well below Tesla CEO Elon Musk’s purchase price of $54.20. The selloff from investors has created more than a $9 billion difference in value between the current and offer price.
If Musk scrap this deal, the CEO of Tesla would have to pay a $1 billion breakup fee should he turn away from the deal.
Twitter said earlier in its statement that the company faced several risks until the deal with Musk is closed, including whether advertisers would continue to spend on Twitter.