A few weeks ago, the microblogging platform Twitter was owned by the Tesla CEO Elon Musk for a whopping amount of $44 billion. Recently, he revealed that he has shelved the $44 billion Twitter deal temporarily to get aware of how many fake or spam accounts are present on the app. Musk has over 92 million followers on the site. He tweeted, “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”
Twitter’s share price tumbled 19% on the news of the deal being extended. According to the link posted by Musk, it reported that Twitter deems fake or spam accounts containing below 5% of users. Earlier this week, Twitter estimated in a filing that fake accounts represented fewer than 5% of its inevitable daily active users during the first quarter.
In the first quarter of this year, Twitter had 229 million users. Musk has signed a $44 billion deal to take over Twitter, of which he will pay $21 billion from his own pocket while the rest will come as a loan from a banks’ association.