Elon Musk announces suspension of Twitter takeover

The group’s action plunged about 20% after this announcement in electronic trading before the opening of Wall Street.

The Tesla and SpaceX boss had reached an agreement in late April with Twitter’s board of directors to buy the social network for US$54.20 (CA$70.67) per share and make it a private company, not listed on the stock exchange.

% du nombre d’utilisateurs et utilisatrices”,”text”:”L’acquisition de Twitter est suspendue de manière temporaire dans l’attente de détails sur le fait que les pourriels et les faux comptes représentent bien moins de 5% du nombre d’utilisateurs et utilisatrices”}}”>Twitter acquisition temporarily on hold pending details that spam and fake accounts account for well under 5% of userswrote Elon Musk on the platform, where he has nearly 93 million subscribers.

The proportion of fake accounts is a key indicator for Twitter, says Susannah Streeter, market analyst for Hargreaves Lansdown, because calculating the precise number of people who actually tweet is considered crucial for future revenue streams through advertising or paid subscriptions on the site.

Contacted by Agence France-Presse, Twitter did not react immediately.

Elon Musk’s promises

Elon Musk promised to rid Twitter of spam, authenticate users and increase transparency, without specifying how he intended to implement this project.

The company indicated in early May, when presenting its quarterly results, that it had an average of 229 million people who use the so-called monetizable social network, that is to say exposed to advertising. She had estimated on this occasion that less than 5% of them were unsolicited messages or fake accounts.

Mr. Musk also said he wanted to make the platform a bastion of free speech and said he was ready to reinstate former US President Donald Trump, whose account was permanently suspended after the attack on Capitol Hill in January 2021.

Since the takeover bid by the boss of Tesla and SpaceX, Twitter’s stock market value has shrunk by billions of dollars.

The stock was trading Friday at just over US$36 (CA$46), well below the billionaire’s proposed purchase price per share.

Market uncertainty

According to Wedbush Securities’ Dan Ives, Elon Musk’s Latest Tweet will turn the circus that is the takeover of Twitter into a horror film worthy of a Friday the 13th.

milliard de dollars américains [1,2millard de dollars canadiens] “,”text”:”Wall Street va maintenant estimer que la transaction est sur le point de tomber à l’eau, que c’est une tentative de Musk de négocier un prix d’achat plus bas ou que Musk souhaite simplement se retirer de la transaction avec une indemnité de rupture de 1milliard de dollars américains [1,2millard de dollars canadiens] “}}”>Wall Street will now deem that the deal is about to fall through, that it’s an attempt by Musk to negotiate a lower purchase price, or that Musk simply wants to walk away from the deal with $50,000 in compensation. breaking 1 billion us dollars [1,2 milliard de dollars canadiens]details the analyst in a note.

The leader had however sought to reassure on his ability to finance the operation, planning to have recourse to a considerable personal contribution and to request a bank loan as well as a loan on margin in which he would pledge his Tesla shares as collateral guarantee.

Earlier this month, Mr Musk claimed he had raised just over US$7 billion (C$9 billion) from various investors, Oracle co-founder Larry Ellison and Prince and Prince Saudi businessman Al-Walid bin Talal.

But according to Dan Ives, the entrepreneur has overestimated the strength of its Tesla shares, whose price has fallen sharply since the announcement of the takeover of Twitter, and could seek to protect the manufacturer of electric vehicles. The fact that Musk is creating such uncertainty with a tweet and not a stock document is very disturbing for us and for Wall Street and raises many questions, but no concrete answers as to whether the transaction will take place.

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