Twitter Down 11% In Pre-market After Musk Says 'deal Temporarily On Hold'

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Billionaire and Tesla CEO Elon Musk has put the acquisition of Twitter on a temporary hold as he awaits further information about spam and fake accounts on the microblogging site. Twitter has openly admitted for years that about 5 percent of the accounts are of fake users.

Musk wrote in a tweet, "Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users." He added later, "Still committed to acquisition."

Twitter shares initially plunged more than 20 percent in Friday's premarket trading. However, the stock rebounded after his second tweet to now be down almost 11 percent.

This comes a couple of weeks after Twitter agreed to be acquired by Musk in a deal valued at about $44 billion to then become a privately held company.

Musk has agreed to pay Twitter shareholders $54.20 in cash for each Twitter share, which represented a 38% premium to Twitter's closing stock price on April 1 which was the last trading day before Musk disclosed his 9 percent stake in the company.

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