Elon Musk said on Friday that his $44 billion purchase of Twitter Inc was on hold for the time being citing pending details on spam and fraudulent accounts.
“Musk said in a tweet that the Twitter deal is temporarily on hold pending details supporting the calculation that spam/fake accounts do indeed represent less than 5 percent of users.”
In premarket trade, shares of the social media company plummeted by 20%.
Earlier this month, the company calculated that false or spam accounts accounted for less than 5% of its monetizable daily active users during the first quarter. It also said that until the deal with Musk is finalized, it faces various risks, including whether advertisers would continue to spend on Twitter. Musk, the world’s richest man and CEO of Tesla Inc, has said that one of his top goals would be to eliminate “spam bots” from the network.